Rental property insurance is important for both the property owners who own the house/building and also for the tenants who rent the property. Rental property insurance is very affordable, considering the amount of coverage available. Nevertheless, it’s also very important to understand the terms of the rental property insurance policy to know what is and what isn’t covered. Usually property owner or landlord’s insurance will only cover the building or the contents within. It does not provide coverage for a tenant’s personal belongings or damages or physical injuries to a tenant’s guests.
Anyone renting a house or apartment can qualify for rental property insurance and receive benefits for things like protection against theft, fire and lightning, smoke, windstorms, falling objects, vandalism or malicious mischief. It also protects against liability if someone is injured in your home and covers legal expenses if you are served with a lawsuit for injuries or damages caused by you, family members or a pet.
There are many different types of rental property insurance, and you should do as much research as possible to determine the policy that is the most appropriate and economical for your particular situation, as well as make sure you purchase enough coverage for any property-damaging event that might happen.
Here are some of the coverage types of rental property insurance. Personal property insurance covers personal property like clothes, personal items and furniture. It can also include coverage on personal possessions if you are traveling or otherwise away from home. Loss of use coverage provides for a policy holder’s living expenses if he or she and family are unable to live in their rented house or apartment because of an insured loss or event. Food and shelter are included while the home is being replaced or repaired for a period of up to two years.
Personal liability covers legal costs if there has bee an injury or damage to a person or property in your home. Medical payments coverage provides for medical expenses incurred as a result of a guest being injured in your home. However, it does not cover payments for injuries that you, a family member or pet incur if they live with you. Inflation coverage regularly increases the amount of a policy holder’s coverage with the increase of cost of living expenses.
After doing your homework and finally deciding upon purchasing rental property insurance, you’ll need to determine whether to insure the place you’re renting at the actual cash value or at the replacement value. Insuring at actual cash value pays the amount of your property after depreciation. On the other hand, insuring at replacement value pays out the total amount of your property regardless of depreciation. There are also a number of discounts that can lower the rates a rental property insurance policy holder will be eligible to receive, such as purchasing protective devices like fire alarms and extinguishers, smoke alarms, deadbolt locks and a residential sprinkler system.
