Got a homeowners insurance? Good for you. This tool gives you the protection if ever something bad happens (e.g. Fire, storm, theft) and your house gets damaged. However, if you decide to rent out your property, it becomes a whole different story. Your current policy will most likely not be enough and you’d need to invest in rental property insurance.
When To Get An Insurance on Rental Property
If you have a real estate you plan to rent out, know first if it’s going to be a long-term or a short-term renting. If it’s the latter — for instance, you’re only allowing prospective tenants to rent your property out for a couple of days — your homeowner’s insurance should be enough.
On the other hand, if it’s going to be a long-term one, that’s the time you have to apply for insurance for a rental property. Apart from protecting the dwelling place itself, this kind of insurance also covers policies protecting the contents of your property and your tenants in case they get injured within your premises.
Beneficial Rental Property Insurance Coverages
In this section, we’re discussing the different aspects that your rental property insurance policy will cover:
Similar to your homeowner’s insurance policy, you’d also get to protect your property or dwelling place once it gets damaged during an unfortunate event (e.g. Fire, storm). In this coverage, bear in mind that your belongings or those of your tenants’ are not included.
Personal belongings and contents coverage
When perils strike your building or rental property, the structure itself will not be the only ones that can get damaged. To give protection to your personal belongings (read: those not brought in by your tenants), you would need to inquire about the personal property coverage.
As this coverage doesn’t give protection to your tenants’ valuables, make sure you talk with them and encourage them to get their own insurance for their personal items.
Loss of income coverage
Have you ever wondered how landlords recover income loss whenever their rental property gets damaged and their tenants would have to move out and look for other residential places for the time being? This loss won’t be felt if you have insurance with a loss of income coverage. When getting this benefit, you need to talk with your insurance company and inquire about the period covered by your policy (typically, this is around one year’s worth of rent loss).
When someone from your roster of tenants gets injured within your apartment or building, you’d need to have liability coverage to help you shoulder medical expenses. For you to be obliged to use this one, you should be proven liable first for the said injury.
There are times when a tenant intentionally causes physical damage to your property. To secure protection against such cases, you’d need to apply for a vandalism coverage. Typical insurance policies don’t immediately cover this one, so make sure you ask about this from your insurance provider.
Avoid potential headaches in the future with a good rental property insurance. Got questions? Contact Insurance Brokers of Maryland today!