Who’s Responsible for What? If you own a rental property, you should be clear on what your responsibilities are and what are the responsibilities of the tenant.
If you’ve invested in a rental property, you’ll want to make sure you have the right coverage to protect your investment in case of loss.
Landlord insurance policies give you the peace of mind that your property is protected in the event of property damage, weather events, or liability lawsuits. Landlord insurance is similar to homeowner’s insurance, with a few add-ons that a homeowner wouldn’t have to deal with.
- Property Damages: Covers damage to the property. Also can protect garages and sheds on the property.
- Personal Property: Protects your personal property on the premises such as tools or appliances.
- Liability: Protects you in the event a tenant or third-party individual is injured on the rental property.
There are additional coverages you can add to your policy that you may want to consider as a landlord such as:
- Loss of rent coverage: Covers you if the property is unable to be lived in or rented for a covered issue.
- Inflation protections: Locks in your insurance rates regardless of inflation.
- Umbrella liability: Provides limits above the standard landlord policy. This is a good investment if you have multiple units.
As a landlord you have more at risk than a typical homeowner. Tenants also need their own insurance. It is a good idea to require your tenants to have insurance coverage, naming the landlord as an additional interest. That way you will know if the tenant does not maintain their insurance coverage.
Landlord insurance doesn’t cover the personal property of the tenant. Tenants should consider the following when deciding on what renter’s insurance coverage they need:
- Coverage for their personal property at a replacement value of the items.
- Coverage for living expense in case they need to live somewhere else temporarily after a fire or other covered loss.
- Renters also need personal liability insurance coverage in the event someone is injured on your rental property.
Whether you’re the landlord or tenant, it is important to make sure you’re covered. Call us for a quote today on landlord liability insurance or renters insurance.