Owners of rental properties face the same issues as do private homeowners. From maintenance to handling repairs after weather events, rental property owners have multiple responsibilities. However, typical homeowners policies do not work for them. Instead, they need specialized rental properties insurance from a trusted company.
What Rental Properties Insurance Policies Cover
Owners of rental properties, or income properties, need specialized insurance packages designed to cover catastrophic damage from unforeseen events. Standard homeowners policies usually become void if property owners decide to take on tenants and rent. Specialized rental property insurance protects against devastating financial loss in multiple types of dwellings, including:
- Apartments
- Condominiums
- Single-family homes
- Multi-family homes, such as duplexes
While rental policies do not cover tenant possessions, they usually do cover items provided by landlords such as appliances or furniture. Sometimes these policies can be structured to cover outlying structures as well, such as garages.
Types of Coverage in Policies for Rental Properties
While insurance specialists customize rental properties policies for each client, they typically have three parts, which are:
- Property damage
- Liability
- Lost rent income
Rental property owners should take care to read proposed policies carefully and look for exclusions.
Owning rental properties can be satisfying, but it also requires planning and care. The right type of insurance for rental properties offers peace of mind and financial security.
