Coverages You Need
For anyone who is considering renting out one of their properties, there are a number of things to consider. Most importantly though is how will you and your income property will be covered. Making sure that your landlord insurance coverage has you protected in case of a crisis is extremely important. But there are so many different coverages and things that need to be considered. We have laid out your coverage options below, and they should answer any questions you might have about being a landlord and how to make sure that you’re insured properly.
Basic Landlord Insurance
The most basic, and most important, coverage to start with is simply called Basic Landlord Coverage. This is the bare bones minimum of what you need. With your homeowner policy, you’ll be covered for most structural damage caused by storms, fire, or sorts of malicious acts. Additionally, most homeowner policies will protect you in the event of a personal injury on your property. It’s important to note, however, that a big difference between homeowner insurance and landlord insurance is that you typically don’t need to carry personal property protection. However, if you are furnishing your rental property, you may want to consider carrying a personal property protection policy.
In addition to carrying the basic landlord insurance, there are a number of additional coverages that should be considered. Take a look at the bulleted points below from Trusted Choice (https://www.trustedchoice.com/landlord-insurance/).
- Coverage for Legal Fees: If you do have a legal claim filed against you, there are many costs that can potentially be associated with such an event. Legal fees alone can be enough to put many landlords out of business. Your liability coverage is designed to help you cover the cost of litigation.
- Coverage for Loss of Rent: This coverage will help you to replace the rental income you may lose in the event that your building becomes uninhabitable due to fire, flood, or damage caused by a tenant.
- Additional Rental Business Insurance: For example, if you have office staff that handles books, records, and accounting, you may want business fraud coverage.
- Umbrella Liability: Umbrella liability insurance exists because even when you have the best intentions and follow best practices, injuries can still happen. An umbrella policy can provide broader liability coverage with higher limits to help cover unforeseen bodily injuries, property damage, and legal claims.
- Workers Compensation: If you have a staff that maintains the grounds or provides building maintenance, you may need workers compensation for your employees.
- Additional Natural Disaster Coverage: Some but not all types of storm damage may be included in your landlord insurance policy. Be sure to read through your policy carefully to determine which types of disasters are covered, and ask your agent to help you determine if additional riders make sense. If you live in a flood zone, for example, you may want to add flood insurance.
Choose Johnson and Associates Insurance
Our clients love working with us because they don’t get an automated phone line. They get a real person each and every time. We pride ourselves on being personable and building relationships with our clients. So, when you’re considering renting out one of your properties, turn to the professionals at Johnson and Associates Insurance.