The Right Way to Insure Your Rental Property so Your Claim is Paid

Do You Need Rental Property Insurance if You Have Homeowners Insurance?

It depends on how long you intend to lease the property, but in most cases homeowners insurance won’t be an appropriate substitute for rental property insurance. Having tenants on your property brings on unique risks that may not be covered by your typical homeowners policy, especially if you plan to lease a property for an extended period of time. The type of insurance you need will depend on how often you rent out your home and the duration of your tenants’ stays. These distinctions can be divided into two categories: long-term renting and frequent short-term renting.

Long-Term Rental

If you have an investment property, vacation home or second home which you intend to rent to a single person, couple or family for long periods of time you will need to purchase rental property insurance. Generally long periods of time are described as six months or longer. The same is true if you decide to rent out your primary residence for a large portion of the year. Operating a rental house increases your exposure to risks, such as liability issues related to tenants and their visitors.

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Frequent Short-Term Rental

If you intend to regularly rent a property to a variety of guests for short periods of time, your property might be considered a business, and you may not be protected by either homeowners’ insurance or long-term rental property insurance. In many cases, this exposure is now excluded from long-term rental property insurance policies. Instead, to cover the associated hazards, you would need to purchase some form of commercial property and liability insurance. For example, for individuals who rent out their home or rooms through a service provider such as Airbnb, some insurance companies can provide vacation rental insurance. These policies include unique features such as bed bug and identity theft coverage.

You should be aware that although service providers themselves may offer a limited form of protection, it usually won’t be as comprehensive as the vacation rental insurance offered by an insurance company. For instance, Airbnb has a host guarantee policy covering property damage to your home up to $1 million for every listing, but the policy includes limitations that traditional insurance won’t. One limitation is that the request for coverage must be submitted within 14 days or before the next guest checks in, giving you limited time to take action and assure reimbursement.

 

Questions? Want to learn more? Here’s 4 easy ways to reach us:

Phone: 877-994-6787
Email: insure@siaonline.com
Text: 951-482-8144
Web: www.siaonline.com

PS Here’s a few words from one client that trusts Stromsoe Insurance Agency:

“SIA has been our trusted partner for more years than I can remember. They take care of everything – our business, rental property and all of our personal policies. They always go the extra step to make sure I am taken care of and are always there when I need assistance. Most importantly – I trust them!”
Stefani Laszko – Mythos Technology – Temecula, CA – Client Since 2007

PPS Every policy is backed by our iron clad, 100% complete satisfaction guarantee. Ask for your copy today!

Put Your Mind at Ease with Top-Notch Rental Property Insurance

Rental property insurance, also called landlord insurance, covers the unique risks taken in renting out your home or condo for long periods of time. These policies include coverage for the structure, liability insurance protection and loss of rental income for landlords renting their property. Whether you are renting a house, a vacation home or an investment property to others, rental property insurance is an important safeguard against the financial risk associated with tenants living on your property.

What Does Rental Property Insurance Cover?

Rental property insurance coverage will vary from company to company, but policies will generally cover the dwelling, liability protection and loss of rental income. Many features of a landlord insurance policy are similar to a homeowners insurance policy, however, there is a cost savings for the landlord due to policy coverage differences.

Dwelling Coverage

Rental property insurance covers physical damage to the structure of the home itself. For example, it will cover damage to your walls and roof but not personal items of your tenant. Coverage will only extend to damage caused by a covered peril, and you should make sure to understand what type of perils are covered by your individual policy.

Coverage For the Landlord’s Personal Property

Unlike renters insurance, rental property insurance does not cover the personal property of tenants inhabiting the property. However, these policies can include coverage for items left onsite by the landlord. For example, if you left a lawnmower at your rental house and it is damaged by a fire, damage to the machine would be covered. On the other hand, if your tenant bought a personal air conditioning unit that is damaged by the same fire, the AC unit and the rest of the tenant’s property would not be covered by your rental property insurance.

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Liability Coverage

Liability coverage will protect you from the legal and medical costs associated with someone being injured on your rental property. If your tenant or a visitor is injured on your property, and you are deemed responsible for the injury, rental property insurance can cover these costs up to your policy limits. If you’re someone for whom the limits of this coverage are not sufficient to cover potential liabilities and you wish to increase your coverage, you could also purchase umbrella insurance for your rental property.

Loss of Rent Coverage

This coverage offers security against loss of rent payments if, because of a covered peril, the property you rent is uninhabitable due to damage from a covered loss. For instance, if fires are protected by your policy and fire damage makes your apartment unlivable, you are covered by rental income protection for the rental payments that your renters are no longer required to pay. In general, coverage will extend to a specified period of time, such as 12 months. Loss of rental income does not always come standard with rental property insurance, so you should check your policy before purchasing it if this type of coverage is important to you.

Optional Additions

  • Vandalism coverage: This usually covers deliberate physical damage to the home.
  • Ordinance or law coverage: This covers a loss of value or costs associated with enforcing local laws surrounding the repair of property caused by an insured loss. Make sure you include this protection.
  • Flood
  • Earthquake

 

Questions? Want to learn more? Here’s 4 easy ways to reach us:

Phone: 877-994-6787
Email: insure@siaonline.com
Text: 951-482-8144
Web: www.siaonline.com

PS Here’s a few words from one client that trusts Stromsoe Insurance Agency:

“Stromsoe Insurance is a reliable agency, it has provided fast and excellent service and made the process of finding the best homeowners insurance for our home.”
Betty Harrington – Murrieta, CA – Client Since 2014

PPS Every policy is backed by our iron clad, 100% complete satisfaction guarantee. Ask for your copy today!