If You Have Tenants, You Must Know This!

Rental property is a huge investment that needs regular maintenance, care, and the right insurance to protect it from damage. But how do you protect your property? What kind of insurance do you need?

Renters aren’t usually responsible when a big appliance breaks, someone gets hurt on the property (even if it’s not the tenant’s fault), a forest fire damages or destroys your home, or burglars just take everything. You’d be left holding the bag for these and other bad things that people or nature did.

The difference between landlord and homeowners insurance

Your primary residence, the place you spend most of your time, should be protected by homeowners insurance. However, landlord insurance is essential because it protects against risks to the business that are not covered by this policy.

Landlord insurance covers rental properties and your house if you want to have a business of renting out your property, while homeowners insurance covers your primary residence.

What’s in the landlord insurance?

1. Property Coverage
   This covers damage from a natural disaster such as fire and earthquake, electric or gas problems, vandalism, or even careless tenants. Get a policy that gives you replacement cost rather than an actual cash value (especially if your fixtures and furniture are old) or a set amount of cash.
2. Fair Rental Value/ Lost Rental Income
   This part of your landlord insurance covers the rental income, which is the most important part of your property from a business point of view. If a covered event temporarily makes the property unfit, this could help you keep getting money.
3. Liability Coverage
   This covers any legal or medical costs that might arise if a tenant or visitor gets hurt due to a property problem. Liability coverage is typically provided by an insurance company to cover legal and medical costs resulting from an accident or incident on an insured’s property. 

What every landlord should confirm

Commercial aspects of renting out your home should be covered by landlord insurance. One investment property could help you supplement your income. Just like investments, you need to protect your asset, and by this, you’ll need landlord insurance.

At Schneiderman Insurance Agency, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays, and we’re here to help you. Learn more about our products and services by calling our agency at (818) 322-4744. You can also request a free quote by CLICKING HERE. Topics and coverage discussed in this article are not guaranteed, consult with your agents to determine what your policy does and does not cover. We are more than happy to help!