Do You Need Landlord Insurance?

If you?re purchasing a home to use as a rental property, then you may think that you?ll only need traditional homeowners insurance. Homeowners policies will cover such things as break-ins, bills related to an accident on your property, or fire damage. However, it may not offer enough coverage if you?re renting out your home. In many cases, owners of rental properties opt to get landlord insurance as well. Confused about whether or not you?d need landlord insurance for your particular situation? Then ask yourself these questions, and talk to an agent about your needs.

How often will the property be rented?

If you will only have an occasional short-term rental on your property, then your typical homeowners policy should be enough to cover you. But if you plan to rent out your home for the summer, and especially if you?re renting out the property full-time, then you need landlord insurance because of the higher risk to the insurance company.

Who will be renting the property?

Will you be renting out your home to a full-time tenant, or are you planning to use the home for short-term vacation rentals? Your insurance company may want information about your potential renters, including their insurance history and occupations, in order to better understand the risk.

Will there be a lease?

Your relationship with the tenant will have some bearing on what type of insurance you?ll need. If you?re just renting out your home for a few weeks to a friend while you are out of town and won?t be using a lease, then the insurance company may feel that there is little risk. But if your tenant is signing a lease, that is something you need to tell your agent. They will decide if landlord insurance is necessary.

Will the tenants need renters insurance?

Landlord insurance covers the building itself but does not cover your tenant?s possessions. Will you require that your tenants acquire renters insurance before signing a lease? It can save a lot of headaches down the line if both you and your tenants are covered. 

Will the property be vacant for any length of time?

If you?re renting out a property and there are periods of time where the home is vacant, you may also need to purchase a vacancy permit. This ensures that your coverage stays valid even when nobody is living in the home.

How much money will be made from the rent?

Is the money that you make from the rental property a sizable portion of your income? Then you?ll want to consider landlord insurance. Many policies will cover your lost rental income if your tenants need to move because the home becomes uninhabitable.

Who will maintain the property and find tenants?

Finally, are you planning to use a property management company to find tenants and keep your property properly maintained? Then landlord insurance will help to protect you with additional liability coverage that is more comprehensive than what you?d receive with a homeowners policy.

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Contatta Agent inc. oggi

Would you like to talk with an expert about buying a property to use as a rental? Then contact Agent inc. a 949-791-8160 o [email protected]. È giunto il momento di aprire il tuo mondo a nuove possibilità.