Every property, whether owned for personal use or as an investment, requires the protection of insurance.
In the cases of rental or lease properties, this protection falls under the category of business investment property insurance and is different than a renter’s policy a tenant might take out.
Applicable for any property that you own and either rent or lease, this policy is available from any business property insurance agency and protects your dwelling when it’s used to generate income.
Whether you have a vacation rental, rent your home for short periods during the year, or have a full-time job managing rental homes, it would be wise to talk about the coverage you need to protect your investment with a business insurance agency.
What is Rental Property Insurance?
Rental insurance or landlord coverage is a type of business investment property insurance that protects a dwelling you own and allow other people to rent or lease.
This policy takes the place of regular homeowners insurance that covers a dwelling occupied by you and your family.
Since rentals generate income, they are viewed as business property and needs specific coverage from an insurance agency that offers such policies.
What Is Covered Under Business Property Insurance?
Rental coverage purchased from an investment property insurance agency protects the physical structure; however, it then provides other important protection that a homeowners policy does not.
It protects the dwelling itself from damage including any caused by your tenant as well as personal property that belongs to you; however, it does not cover your tenant’s personal property that should be covered under a renter’s policy taken out by the tenant.
There are multiple coverage levels or forms available, with each level covering more perils so you can tailor coverage to your needs based on how you rent or lease the property.
Business rental plans also provide you with essential liability coverage in case your tenant or someone else is injured on the property.
The liability coverage limits are much higher than that with a homeowners policy and is comparable to liability limits similar to most other business policies.
You may also be able to purchase loss of income coverage from your business insurance agency to pay& benefits if case damage from a covered loss makes it untenable for a while as repairs are being made.
Who Needs A Rental Insurance Policy?
Anyone who owns a dwelling that is rented in full or in part for any length of time needs some form of renter’s business insurance.
Whether it’s a home that you rent as an Airbnb a few weeks a year, a spare bedroom or suite in your house, or an entire home on a full-time basis, you must purchase a business policy if you want to be covered for damage to the structures and any potential liability exposures.
In certain cases, a homeowners policy may allow you to add a rider to rent a bedroom or offer your home on an occasional, short-term basis; otherwise, you need a business policy.
Protect Your Rental Property
The key to the proper management and protection of rental properties in order to profit from them is having the right business investment property insurance.
Discuss your rental with a business insurance agency that can underwrite a policy to give you the level of protection you and your dwelling need!