As a landlord, you need a good insurance agent to help you make an informed decision about purchasing insurance for rental property. If you don’t have the proper insurance coverage for your rental property, you can find yourself with serious financial and legal problems.
Homeowners Insurance vs. Landlord Insurance
Proper coverage starts with a landlord insurance policy, which may also be called a property and casualty insurance policy. This is different from a regular homeowner’s policy, so it’s possible that you will need to switch plans if you currently have a homeowner’s plan. With a landlord policy, there are many pieces of insurance to consider. There’s general liability, building coverage, hazard and fire coverage, loss of rental income, flood insurance if the home is in a flood plain, and coverage for sewer backups. The dollar amount for a landlord policy is typically about the same or a little more than regular homeowner’s policy.
Property Management Orlando: Choosing Coverage
When you’re choosing the right insurance for landlords, make sure you are purchasing complete coverage. Keep in mind that your insurance agent needs to know many details about your property in order to get you the right amount of coverage. You’ll have to talk about and document the property’s age, condition, and the type of investment property it is; a single family home or a condo. Any other special circumstances pertaining to the property should also be discussed with your agent. Ask questions and make sure everything is explained so that you understand what kind of coverage you have. Most landlords don’t realize that if they file an insurance claim on their rental property, but the insurance policy is still listed as a homeowner’s policy, the claim will most likely be denied.
There’s a lot more to talk about when it comes to rental property insurance. If you have any questions about landlord insurance or our Orlando property management services, please contact us at Hampton & Hampton Leasing and Management in Orlando.