Do you currently have a rental property or are you in the process of purchasing one? Some homeowners may be surprised that their homeowner’s insurance policy will not cover any damage when it comes to claiming your residence as a rental property. After all, it makes sense that renting your home out to people will not be covered in the case of any damages to your guests do. So how do you take the necessary steps to make sure you are covered? Here are 5 important things to know about insuring a rental property.
Purchasing Dwelling Insurance is a Must!
Have you seen this type of coverage on your homeowner’s insurance policy? Most likely, as it is a very important aspect of making sure the structure of your home is protected. In the case of any damage to the outside of your home such as in the situation of an intense storm, dwelling insurance will make sure you can repair the structural integrity of your home. Your current homeowners’ insurance will not cover these types of damages to a rental property, which is why purchasing dwelling insurance is so important.
Consider Purchasing Rental Loss Coverage
You are probably thinking, doesn’t my current insurance policy cover loss due to damages such as vandalism, storm damages, unforeseen disasters, etc. Well yes, but not for the tenants. By having this insurance, you are making sure you are covered when your property is damaged. Depending on the cost of damage, you are likely to receive the money needed to repair your home. If you do not purchase this insurance, you are really putting yourself and your tenants in a position no homeowner should feel when they are renting out their property to others.
Cover All Your Personal Belongings on Your Rental Property
In between busy times of renting out your property, you may find yourself keeping your belongings at the rental property. If this is the case, you might want to consider purchasing additional insurance to cover your items in your home. If any of your items are damaged by tenants, including furniture, this additional insurance will help you out in the long run.
This is perhaps one of our most important tips on this list, as this protection makes sure you are covered in the case of one of your tenants is injured on your property. One of the worst-case scenarios if a fire breaks in the rental property and one of your tenants is injured. You will likely be covered for it if you purchase liability protection. Considering other types of insurance, liability protection is relatively cheap, and we highly recommend getting it!
Ask Tenants to consider purchasing renters’ insurance
In the end, damages to rental properties occur. If the homeowners are not at fault for the damages, the tenants are next in line. If they do not have their own renters’ insurance policy they are going to end up having to pay for the damages, which could cost a lot.
Do you have any questions regarding insuring a rental property?
At Performance Adjusting, we have the professionals on call ready to answer any question you may have. From the cost of these several types of insurance and explain more how you will be covered. If you feel you have unfairly received less money than you deserve in the case of damages done to a rental property, we are the people you need! For over 18+ years we have helped countless homeowners make sure they get the money they deserve to repair their rental property to normal! Call us at 401-724-9111 for a free quote and any questions you may have.
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