How to Get The Best Coverage And Price For Your Rental Property Insurance

Keep your money protected with rental insurance.

As a landlord, rental insurance is a necessity if you want to avoid paying hefty fees and damages from lawsuits brought against you. A landlord is legally responsible for maintaining the premises to prevent injury. Insurance coverage also protects you against property damage costs incurred through environmental factors like severe weather. Speak to multiple insurance companies to get the best price and coverage for your policy.

Instructions

1. Choose the correct form of insurance for the dwelling you own. Landlord rental dwelling insurance covers a building where one or more families may reside. Landlord condominium rental insurance is for individuals who rent out a condominium that they own.

2. Decide on the level of coverage you require. The best type of coverage to obtain is liability protection and fair rental income. Liability protection pays damages on any injuries sustained on your rental property and covers the cost of legal counsel. Fair rental income pays you rents in the case you can not rent out your property due to damage.

3. Ensure that structures on your property are included in your policy. Look for inclusions of any sheds, garages and additions to make sure any damages sustained to these structures are covered. Maintenance equipment used on the dwelling can also be written into a rental insurance policy.

4. Review the type of property damage covered in the insurance policy. Good coverage will protect the landlord in the event of fire, lightning, wind, hail, water damage, smoke, explosions, falling trees, damages sustained by vehicles or freezing pipes.

5. Insure dwelling and structures for at least 80 percent of their replacement value. This is the minimum amount of coverage required by rental insurance companies like the IMT Group.

6. Compare prices from competitors. To get the best price, collect quotes from companies that offer rental insurance policies. If you want to use a certain company that has the inclusions you desire, let them know the lowest quote you received to see if they will match it.

Tips & Warnings

• Rental insurance typically only covers the building you own and not the personal property of your tenants. Renters insurance can be taken out to compensate you for any belongings lost or damaged while dwelling in the rental property.

References

• Bankrate: Renting out a Home? Get the Right Insurance
• Nolo: Tenant Injuries: Landlord Liability and Insurance FAQ
• All State: Landlords Package Policy Coverage
• IMT Group: Landlord Insurance Policy Offered by The IMT Group