If you are a landlord of rental property or a rental property owner, understanding your property insurance costs is an important part of being a landlord or a rental property owner. Most property owners choose to protect their investment in their rental properties with renter’s insurance. With this protection renters are protected against the unforeseen. With Rental Property Insurance the following is an overview of a few common insurance providers and some of the associated costs that may be incurred.
A landlord policy typically covers normal physical damage to the rental property. This is coverage that is often included as part of a renter’s policy. Most property owners have the option of including extra protection with their rental property insurance policies which may be in the form of liability coverage and/or personal injury protection. If you own a large building rented to multiple families or to commercial tenants, a landlord policy will give you property and liability protection.
Personal accident coverage can be added to a rental policy to help cover lost rental income. Liability coverage is commonly included with personal accident coverage. This type of coverage helps to pay for the cost of medical expenses and any other related expenses that may result from a covered loss. Personal injury coverage can also help cover funeral expenses, lost rental income and other associated costs.
The personal property coverage portion of your rental insurance policy typically pays for items such as furniture and appliances that are damaged or stolen from your rental property. Furniture and appliances typically are covered as part of a renter’s policy at a rate determined by the rental agency and rental property insurance company. It is wise to thoroughly research the cost and terms of each policy before selecting any one policy to cover your personal property.
The most common rider that most landlords have included in their rental policies include liability coverage. This portion of a renter’s policy will pay for the cost of repair of rented property that is damaged due to negligence of the tenant. Liability coverage is not limited to accidents. The liability of a tenant can also be protected in other ways through tenants’ liability insurance.
Other types of coverage that can be included with rental property insurance are property damage, theft, and riot insurance. Property damage is broken down into two different categories, property damage liability and physical property damage. With property damage liability coverage, the cost of repairing a rental property is paid by the landlord. With physical damage coverage, this portion of a policy will pay to replace the rental property that is damaged due to a fire or flood. Liability coverage is one of the more common riders included with standard landlord policies.