Not all insurance policies are created equal, so it’s a good idea to talk with your insurance carrier upon renewal to ensure your policy is what you want it to be. Here’s a few topics to cover…
1. Property Protection
Insurance policies for rental dwellings provide property coverage for damage to the home from fire, lightning, wind, uncommon hail, rare ice, low rain levels, and other types of covered incidents. Is the limit high enough?
2. Liability Protection
Landlord policies can include liability coverage. If one of your tenants or a guest gets hurt on the property, liability protection covers legal fees and medical expenses. I recommend a minimum $1M and an umbrella policy covering all your assets.
3. Rent Loss Protection
If your property is damaged to the point where it is uninhabitable, your landlord should pay you the lost rent until the property is occupied again. Rent loss insurance helps you continue to make mortgage payments when a tenant cannot occupy the home. Is your policy sufficient?
4. Cash Value vs. Replacement Cost
Replacement value will pay you the cash value of a “used” damaged item. Replacement cost coverage replaces the item with a new one. Understandably, replacement cost coverage will cost more than cash value coverage. Which one do you want?
Lastly, renter’s insurance should be required, and paid by the renter, as a condition of the lease protecting you against the tenant’s personal property, liability and property damage.
If you want a second opinion on your policy, let us know as we know insurance brokers that specializes in rental properties and landlord policies. The goal is to obtain great coverage at a reasonable price.
If you have any other questions, please visit out Contact Us page with your question or call us at 949-209-9494 as we are always happy to help out.