Getting Tenants Rental Property Insurance
Insurance can be confusing; most clients don’t know the different type of policies, and coverages so they simply end up buying on price alone. This can be disastrous especially for Rental Property Owners. When there is a uncovered claim that ends up costing you thousands of dollars out of your own pocket only then do you realize that buying on price only is disastrous.
Cheaper Is Not Always Better – Don’t Buy On Price Alone: Rental property owners, like any good business owner, is always trying to squeeze out every possible penny possible. Whether it be buying a off brand or on sale paint, a lower grade carpet because every dollar saved ads to your bottom line. Right? Wrong when it comes to insurance. A non covered claim costing you thousands of dollars out of your own pocket is not worth buying the few dollars a month CHEAPER policy. Insurance is only as good as if it covers your claim when you need it the most. There are lots of ways to get a cheaper rental property insurance policy, know your options, your coverage choices and make a informed decisions. Always get a Form 3 policy when possible.
The proper rental property insurance coverage can protect you from losses caused by many dangers, including fire, storms, burglary, and vandalism. A comprehensive policy also includes liability insurance, covering injuries or losses suffered by others as the result of defective or dangerous conditions on the property. Liability insurance also covers the legal costs of defending personal injury lawsuits – a valuable feature because the legal defense costs of these cases are commonly much greater than the ultimate award of damages, if any.
The following list describes the three levels of coverage available for primary policies, all of which include liability coverage. Many insurance companies offer competitive insurance packages especially designed to meet the needs of rental property owners, so remember to shop around.
Basic coverage: Most companies offer a basic coverage package that insures your investment rental property against loss from fire, lightning, explosion, windstorm or hail, smoke, aircraft or vehicles, riot or civil commotion, vandalism, sprinkler leakage, and even volcanic eruptions.
This coverage often doesn’t include certain contents, such as boilers, equipment, and machinery unless specifically added as an endorsement. Based on the type of property you have, you may need to consult with your insurance agent about additional coverage that may be beneficial.
But just because you own a small retail strip center with a couple of plate glass windows doesn’t mean you need to have the special coverage that’s offered. Insurance companies often have minimum policy premiums, so certain insurable items and acts aren’t worth ins