If you are planning to move some tenants into your rental property, there are a few things to consider before finalizing things. Having the proper insurance in place is essential. Consider the benefits of landlord insurance coverage. The policy covers your unit if it suffers damage due to a natural disaster such as a tornado or an accidental fire. The policy will cover any interior or exterior structure repair costs. Landlord insurance also covers you if there is a liability dispute. Perhaps you overlooked an issue in the unit, and one of your tenants suffered a severe injury. Landlord insurance will cover their medical treatment. If the rental unit is eradicated, adding the loss of income coverage to your policy provides extra protection. Loss of income coverage helps you stay afloat until your rental property is repaired.
While landlord insurance provides exterior and interior protection, you may be concerned about your furnishings. Landlord insurance should cover any damage to furniture and amenities you provide to tenants. However, look over your landlord’s insurance coverage limits to make yourself informed. This is especially important if you add luxury furnishings to your rental unit to attract more clients.
If the damage exceeds your coverage limits, you may have to cover the remaining costs out of pocket unless you amend your policy. It’s recommended that you choose coverage limits that you are comfortable with. Your policy deductible is another variable to consider. The policy deductible is the amount you pay for a claim before your insurance covers the rest.
Be aware that your landlord insurance policy will likely include some exclusions. These are potential losses that are not covered by your policy. Landlord insurance is designed to protect all of the items you provide tenants while staying on your property, though there are some exceptions. Landlord insurance does not cover your tenant’s things. You are not responsible in most situations if your tenant’s items are stolen or damaged. This also applies to any items you store at your rental property. Maintenance issues are generally excluded from landlord insurance policies.
You are responsible for taking proper care of appliances such as the stove and refrigerator. If an issue arises due to poor maintenance, you’ll likely be responsible for covering the repairs out of your finances. Vandalism is another common exclusion. However, you can amend your policy to provide extra coverage if this situation occurs. Your tenant is responsible for taking care of their items. It would help if you inquired about your tenant’s insurance status before they move in for full transparency.
Renting out your property is a great way to enhance your portfolio and earn extra income. However, there are still risks that should be considered. Landlord insurance is a safety net if an issue arises with your furnishings. If you have any questions regarding coverage, contact the experts here at Fuller Insurance Agency, and we will provide a solution.