What is Rental
Property Insurance?
Rental property insurance is a policy taken by homeowners to protect against the loss of income from the property, coverage against liabilities caused by tenants or any other losses caused by theft etc. A rental property insurance can also provide coverage for your property against damages including fire accidents, storm, cyclone, hurricane, theft and vandalism. A full coverage may also provide for liability insurance for bodily injuries caused to tenants due to any kind of dangerous conditions in your rental property.
Some of the factors that can affect the price of your rental property insurance may include the number of units in your property, property age, condition, replacement cost, geographic location and materials used in the construction of your property, etc. Rental property insurance is specially designed to meet every requirements of owners of rental properties.
Generally the insurance comes in various types including:
Basic Coverage: This is basic policy that provides coverage for your property from damages caused from fire, storm, lightning, explosion, windstorm, vehicles, riot, burglary etc. The basic coverage doesn’t provide for the coverage of equipments unless specified in the policy.
Broad form coverage: In addition to the basic coverage, the broad form coverage provides protection against damages caused due to snow, glass breakages, plumbing issues or due to some falling objects etc.
Special Form: This is a complete coverage for your rental property that can provide cover for all kinds of losses. Make sure to read through the policy to understand the coverages included
Who needs Rental
Property Insurance?
A rental property insurance is required for people who are renting out their home, a vacation home or any kind of investment property to protect against the losses incurred to the property or damages caused to tenants as consequence of dangerous living conditions.
Even if you have homeowners insurance, generally it covers the losses caused by tenants or bodily injuries caused to your tenants due to a broken step or a stairway. The type of rental property insurance you may largely depends on the duration of which you need to rent the property—long-term, infrequent short-term renting and frequent short term renting.
Long-term renting: When you are renting your property to a tenant for a longer period of time, then you definitely need a rental property insurance policy. You may never know what kind of damages caused and it is better go for a rental property insurance and have yourself covered from liability issues which your homeowners insurance doesn’t provide cover for.
Infrequent short-term renting: if you are renting your property for a week or a weekend, then you may need to contact your insurance agent to understand the coverage you can get from your rental property insurance. There are companies that allow you to buy endorsements to extend your insurance policy to provide coverage for temporary rentals
Frequent short-term renting: If you are in the process of renting out your property for regular short term renting, then rental property insurance or your homeowners insurance won’t provide coverage you may require.
With our thorough knowledge of all the services we support and the industries we serve, we make educated recommendations which help our customers take advantage of the best, most economical coverage possible. At Brookhaven Insurance agency we help you choose policies that address your needs and ensure protection. And we do it all clearly and with purpose.