It is always important that you work to protect yourself, whether you are a landlord that is renting out a home or whether you are the tenant who is renting from a landlord. You never know what can go wrong on both ends of the deal, so having rental insurance is definitely a must. Of course you'll find that there are particular options for renters when it comes to renters insurance and then there is special rental property insurance for landlords available as well. Although many people may think that a landlord should be insured, they often forget to realize that it is so important that they have insurance while they are renting as well. So, let's take a look at both landlord rental insurance and renters insurance for tenants.
Landlord Rental Insurance
Having your own insurance as a landlord is very important if you are going to rent out properties. It is important that you are well protected when you are involved in renting property and good insurance can help to keep you protected if you lose income, if there are legal disputes, and if something bad happens to your property. There are a variety of different options available and coverage for many different situations that is available. However, there are some basics that you'll always want to make sure are included in your policy. Here are the fundamentals of a policy for a rental insurance policy for landlords.
- Property Coverage - First of all, you'll find that property coverage is going to be important if you own rental property. When you go with landlord rental insurance, you'll want to take a look at your policy to see what kind of property coverage you have. You'll want to make sure that your insurance policy covers the rental building itself, any other structures that you have on the property, such as the shed or a garage, and your own personal property that may be stored on the rental property should be covered as well.
- Protection from Lawsuits - Another important thing that you need to look for when it comes to your rental insurance as a landlord is protection from lawsuits. When you are renting out property, this is a huge risk that you will face. If people get injured while they are on your rental property, they could try to sue you. For this reason, having good insurance that will protect you against these lawsuits is important and will definitely come in handy if you every deal with this type of a problem.
- Protection in Case of Loss of Rental Income - Loss of rents coverage is also very important if you are a landlord. If for some reason you end up not getting the income that you are supposed to from your tenants, you still have to come up with the money to pay the mortgage. This type of insurance helps you to make sure that you'll be insured in case you do lose your rental income.
Renters Insurance for Tenants
Of course renters face many risks when they are renting as well and renters insurance is definitely an important purchase. If disasters strike, you'll be at the same risk as someone that owns their own home. While the landlord probably has their own insurance, it is not going to protect all of the things that you own. For this reason it is so important that you have good renters insurance that will provide you with the coverage that you need for all your goods when you are renting. So, let's take a look at some of the things your insurance will cover.
- General Coverage - First of all, let's take a look at the general coverage that you'll get with renters insurance. Your personal property will be protected by your insurance in the case of several different types of perils. Some of these perils that are covered include hail and windstorms, aircraft and vehicle damage, volcanoes, lighting, fires, riots, falling objects, theft, vandalism, smoke, explosions, weight of snow, accidental cracking of water heaters and air conditioners, water damage from appliances, sprinkler systems, air conditioning, and plumbing, freezing of the plumbing, and electrical current damage. Of course it is important to realize that earthquakes and floods are not included. If you think that you may have a problem with either of them, then consider a separate policy.
- Taking Inventory of Belongings - When you are purchasing renters insurance, you'll want to take the time to take inventory of your belongings. This is important, since you'll want to be reimbursed if something happens. You can do this by keeping receipts, documenting with photos or videos, and writing down all the items and serial numbers of valuables that are in your home.
- Other Benefits - There are other benefits to going with rental insurance as a tenant as well. Often your policy will provide you with liability coverage if some falls and sues you. Also, if you have to move out because of a problem in the rental, often the insurance will cover the expenses of living somewhere else if you have to.
John Mazzara CFP CLU CHFC CEBS CMB MBA MS is an independent financial planner in the Twin Cities, MN. Officing out of Edina, Minnesota-John is centrally located within the 7 county metropolitan area. John owns three separate businesses-a licensed real estate broker associate selling Minnesota Real Estate since 1986-affiliated with RE/MAX Associates Plus http://www.selling.mn - an independent CFP-certified financial planner since 1989 with an independent Minnesota financial planning firm-Financial Planning Associates and the owner of a Minnesota mortgage broker firm-Venture Development Inc-specializing ins residential, commercial and investment mortgages http://www.ventureloanapp.com John has a wealth of knowledge and experience that surpasses most other advisors. If you are looking for someone to help you in the areas of real estate sales/purchase, mortgages, or and/or financial planning and insurance you should call John for a free 1 hour consultation to see if he can meet your needs. 952-929-2577. |
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