You’ve invested a lot of money in your rental property, and you continue investing in its condition so you can attract the best tenants and earn the highest rents.
Protecting your property from potential damages is best done through regular inspections, preventative maintenance, and great tenant selection.
You also need insurance.
Here’s how the right insurance policies protect you and your property from damage that can be caused by your tenant or unforeseen events.
Owners Need a Strong Landlord Policy
Protection starts with the right insurance policy. A homeowner’s insurance policy will not cover you when you’re renting out a home. Instead, you need coverage that’s specific to income-producing properties like your rental.
A landlord policy protects your dwelling against any physical damages to the structure or systems of the home caused by hurricanes, fire, lightning, wind, hail, water, or other covered perils. It also covers your own personal property that’s in the home, such as appliances. Your landlord insurance offers liability coverage as well. If your tenant gets hurt or a guest falls down the stairs, you’ll be covered for legal fees and health care bills.
Always Opt for Loss of Rent Coverage
What if there’s a covered loss that requires your tenants to move out of the home? Maybe a hurricane tears the roof off or a kitchen fire leaves the unit uninhabitable. Your tenants will not be able to stay in the home, which means you may have to put them in a hotel or make other accommodations. If they can’t live in the property for an extended time, you’ll lose a lot of rental income in addition to paying out of pocket for costs like hotel bills.
If your landlord policy doesn’t already include loss of rent coverage, consider adding it. The addition may cost a little extra, but remember that insurance premiums are tax deductible.
Requiring Renter’s Insurance from Tenants
It’s always a good idea to require renter’s insurance. This protects you and more importantly – it protects your tenant. Write this requirement into your lease agreement for your tenant’s protection. Remind them that their belongings aren’t covered under your own policy. A renter’s insurance policy will usually be inexpensive. Most tenants can get insured for less than $20 a month.
A renter’s insurance policy will also protect your tenants from any liability that may come from unintentional acts. If they leave a pan on the stove and a fire starts in the kitchen, their policy will cover the costs of repairing that damage.
Insurance is an important first step in protecting your property from damage that can occur due to a tenant’s actions or other general disasters. The best way to protect your investment property is by working with a professional property management company in Volusia County. We can help with inspections, tenant screening, and preventative maintenance. All of these things, as well as our legal knowledge, protects you against damage and risk.