It is the landlord’s responsibility to ensure that they have the proper insurance. This blog post aims to help landlords understand the different types of insurance they should consider and what each cover. In addition, we will offer tips on how to find the best rates for landlord insurance. We hope you’ll find this post helpful no matter where you are with your rental property business!
Landlord insurance types
Property damage, liability, rental income protection, and renter’s insurance are all types of insurance landlords should consider. Here’s a closer look at each:
Insurance for property damage
Fire, storms, or other natural disasters can damage the structure of your property. You’ll need to purchase separate coverage for your contents if you want your property damage insurance to cover them.
Insurance for liability
As a landlord, you are protected from any legal claims against you. However, a person may sue you for damages if they are injured on your property, for instance. You can also be protected if your tenant damages another person’s property.
Insurance for rental income
The loss of rental income will be covered if your property becomes damaged or uninhabitable. A rental property cannot be rented while being repaired, or if you must evict tenants for some reason, this can be helpful.
Insurance for renters
To protect your belongings, you should ensure that your tenant has an insurance policy. Whether a building is an apartment, a house, or a duplex, your landlord’s property insurance only covers the building. Unlike personal belongings and some liabilities, renters’ insurance covers only personal belongings and some liabilities. You are responsible for locating and paying for this insurance policy as a renter. About 95% of homeowners have homeowners insurance, but only 41% of renters do. Therefore, your lease agreement should include a requirement to carry renter’s insurance.
Sound Point Property Management is here for you
In addition to purchasing property damage, liability, and rental income protection insurance, landlords should also require renters’ insurance. Following the above points should keep you covered as a landlord or homeowner regarding insurance.
If you feel overwhelmed with worries regarding your rental property, we’d be happy to manage your property for you.
