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Rental Property Insurance

Synnuh | Dec 14, 2009 |

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We always need to insure our most valuable possessions. We have health insurance, home owner insurance and life insurance. If you have rental properties, you will also need to insure this as well. Since you may rely on the income from renting apartments, homes or even vacation homes, you will want insurance to cover many different areas.

Just about all insurance companies carry products for rental properties. You need to check with your agent or insurance broker on what type of policies they offer. Many times your existing homeowner's policy may cover a rental property as well. However, you do need to think beyond some standard coverage. Of course you need fire insurance, but you should also consider covering your loss of income if the tenant(s) need to leave the unit due to damages. You still want to collect the rents and there is insurance to cover the loss of income.

You should also obtain coverage for the contents that belong to you. This may include appliances and furnishings, if you provide them. You should also insure the premises for any potential claims from the tenant. This would include accidents occurred by the tenant. There are policies that will include insurance for anyone performing repairs or maintenance at your property in case of injury or other liabilities.

There are options to cover tenant contents and relocation of a tenant while repairs are being made. Most polices will include theft and vandalism coverage as well. Some landlords will require their tenants to have tenant insurance to cover their own contents of the unit.

With so many options available, it is important to determine the coverage needed. Flood and extreme weather insurance may be an integral part of the policy. You can obtain quotes and information on the internet from many of the major insurance carriers. You can work directly with your insurance agent to get the best product to protect your asset.

Rental property insurance should be the first thing you do after obtaining your mortgage. The time is great to purchase rental properties. With interest rates low, you will have an easier time to invest in property. Even if you have less than perfect credit, you can get mortgages with bad credit. It may have a higher interest rate and require more of a down payment, but it can be doable.

You have found a great rental property and have secured the mortgage. You now must make sure that you insure the property to protect yourself. A rental property can be a great source of income and you do not want it to go away, just because you did not get enough rental property insurance.