Protecting Yourself and Your Renters
You turn from a homeowner into a landlord when you rent out your property, so your homeowner’s insurance no longer applies. While landlord insurance is not required by law, it is usually required by any lenders who have a stake in the property. Even if you aren’t required by any other party to have it, landlord’s insurance is a no-brainer to protect yourself, your property, and your renters.
Don’t let this new type of insurance intimidate you. Landlord insurance covers the usual staples of homeowner’s insurance, like fire and weather damage, while also protecting against other things only landlords have to deal with. One of the added perks to landlord insurance is personal liability coverage, which becomes useful if a tenant hurts themself while on your property.
Some insurers may also cover loss of use coverage, or loss of rental income if the property is uninhabitable for a length of time. Some accidental tenant damages may be covered, although collecting a security deposit from your renters is another good way to pay for those. Landlord insurance does not cover repairs, so those will still have to be paid for out of your pocket. Make sure your property is in good shape before renters arrive!
Because landlord insurance covers more than homeowner’s insurance, it is typically more expensive. Quotes can vary based on the length of a lease, because tenants that stay longer tend to be more invested in keeping the property in good shape.
While landlord insurance protects the owner’s property, anything renters bring with them will have to be covered by renters insurance. Most landlords insist that their tenants have renters insurance so that any possible issues in the future can be handled easily. If landlords don’t mandate that their tenants have their own insurance policy, renters may not be aware that their belongings aren’t covered by the landlord’s policy.
If your tenant’s belongings are damaged in a fire, soaked in a flood, or stolen from the property, they can go directly to their insurance provider and get reimbursed.
Property Management in Delaware
As always, if you’re an investor and interested in owning property in the beautiful state of Delaware (or already have one and need help) – we’re here for you! Connect with us for all your property management needs.
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