Unfortunately your landlord, being in the business of buying investment properties and renting them, is going to do everything he can to cut costs. Real estate is a tough business, and they can’t ever afford to get every kind of insurance to cover the house or apartment for property investment or otherwise. The landlord only has to get what’s required. That’s why you really should consider getting rental property insurance. When the owner of the place you are renting gets insurance, it is usually only to cover the actual house and structure, not anything inside that house. That means if something happens and you don’t have rental properties insurance, then none of your stuff inside the house will be covered.
Usually a landlord requires insurance for rental properties that they rent to other people as a condition of the lease. This gives double coverage for the house, and also protects any of your belongings inside of the house. Another thing that rental insurance can do is to provide coverage for any injuries of your guests, since the landlord’s insurance won’t cover that either.
There are many different types and kinds and coverage that you can get. Read below to learn more about these so that you can make the best decision for you and your family. Also, it’s always best to pay a little more each month, then to lose out because you wanted to save a few bucks, if anything happens. You also may want to consider setting up an LLC, to further protect your finances from any risk that can happen being an investment property owner.
There are a few different types of coverage that you can get on your rental property insurance policy:
- Loss of Use – If something happens to your house that is covered under the insurance policy, and you can’t live in your house during the time it is getting fixed, loss of use coverage will pay for your living and food expenses for the time it takes for your house to get repaired. That way, if you have to pay for a hotel and eat out for a few days while your house is recovering from a flood or something, those expenses will be reimbursed.
- Personal liability – If someone gets injured on the property, this will help to pay for your legal obligations for that injury or for any damage in the house.
- Personal Property – This is the most important, and it covers stuff such as belongings, clothes and furniture. This also helps to protect your stuff if you are on a trip and something happens in your home or any of your stuff in stolen.
I hope that knowing the importance of rental property insurance as well as knowing the different things that should be covered, that you can make the best decision on the type of rental property insurance coverage that you need for your specific situation. Refer to our guide on setting up an LLC if you want to further protect your real estate investment assets.