Renting out a property can be very profitable, which makes it especially important for landlords to protect their investment. Landlord insurance provides property owners the financial peace of mind they need for renting out their properties.
Here is a simple guide to understanding insurance options for rental properties.
Much like homeowners insurance, landlord insurance isn’t a legal requirement. However, many mortgage lenders require landlords to get insurance for their rentals if seeking financing.
Landlord insurance offers similar coverages to homeowners insurance. Primarily, a landlord insurance policy will cover structural damage to the property. However, it will also cover loss of rent income if repairs cause the renter to move.
Landlord insurance doesn’t cover everyday damage from wear and tear. It also may exclude damage from certain perils, like earthquakes or floods.
The current state of your rental property can affect the cost of landlord insurance policies. This includes factors like the age of the property, location, size, amount of rental units within the property and the presence of on-site security.
For insurance providers, there is a higher level of liability when a property is being rented out to somebody other than the owner. This can make insurance pricey. However, having a policy specifically for your rental property can save you money in the future.
Speaking with an insurance lender can help you find the right policy to protect your best interests.
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Marsha brings her combined 46 years of successful real estate brokerage experience and expertise to every transaction. Recognizing the overwhelming demand for personalized and objective consulting services and assistance, Marsha expanded her business model to a national and international scale. She consults and oversees the acquisition and disposition of primary residences, vacation/second homes, and commercial real estate. And presents on U.S. opportunities in Europe, Asia, and the United States. Her personally vetted network of Global Partners are uniquely skilled and positioned to assist with the needs of her clients; focusing on advancing their knowledge of local markets and opportunities, empowering them to make informed decisions.
