How to Insure Rental Property

Becoming a landlord carries a number of risks, and there is special insurance available that can protect you from the dangers of owning the rental property. Follow the correct procedures to locate places to buy rental property insurance and to obtain the proper coverage.

Instructions

1. Check to see if your existing homeowners policy covers rental units. Some companies extend coverage to up to two rental properties. Work with a qualified commercial insurance broker if your homeowners policy does not adequately cover your rental property.

2. Add special coverage for the appliances in the home or unit so if the tenant's child uses the dishwasher door as a stepping stool to reach the cookie jar, you're covered. If the property is furnished, make sure that your policy covers all the contents.

3. Protect your rental income in the event of any loss. Remember, it takes time to rebuild after any loss. If the tenants have to vacate the premises, your source of income goes with them.

4. Protect yourself and all your belongings from litigious tenants with adequate liability coverage.

5. Consider employer's liability to cover claims filed by anyone you hire to work on your property. This includes, but is not limited to, handymen, painters or landscapers.

Tips & Warnings

• Perform all necessary repairs in a timely manner.

• Install smoke detectors in all units and replace the batteries every six months. Use the change from Standard to Daylight Savings Time as a reminder.