Policies for Rental Property Insurance coverage can be very different. A rental may be covered under a homeowners policy. You may have a condominium policy that only has liability coverage. Your individual policy may have much more coverage included.
A homeowners policy on a property with rental status is a very expensive way to insure a piece of property. Do some research to find a policy that will cover all non attached structures and any personal property that you have for your tenants use. The rental insurance falls into two main categories. One is for condominiums and the other is for those that have four or fewer family units.
To find many of the options available, you can check out the Internet. Different circumstances require different types of coverage. Finding the plans and limits that fit your needs may mean comparing several different companies. You should remember to check the options on the company that you use for your house and car insurance. A good discount can come from having multiple policies.
If you have other structures such as a garage or shed on the property you should provide coverage for those as well. Most policies will automatically cover these items but you should read the policy closely to ensure that they are covered under the policy. Any structure that is not a part of the home, condo or apartment will need to have verification of coverage if something should happen.
Personal property that you may have in your rental property such as tools, furniture or appliances also needs to be covered. If your tenant makes use of any of these articles, they will also need to be listed. On-site storage or articles provided for the renters use need to be covered.
Coverage such as loss-of-rental-income might be important to you. If you don’t have at least six months of the rental property mortgage set aside or you need the rent to make other payments, this may be very important to you. Take some time to see how you can handle all the bills without the rent money and it will tell you whether you need this coverage.
Rental property insurance coverage may need to include water backup coverage. This is another one of those protections that just might come in handy. The legal defense court costs coverage can really be a big issue if you have several rental units. If you only have one unit and you know your renters well, it may be something you don’t need. If not, it could save you thousands of dollars.
