Understanding Rental Properties Insurance

Posted on 7 June, 2023

Being a landlord can produce numerous benefits and awards, which is why rental properties insurance is a need. From property damage caused by unforeseen events to liability protection against tenant lawsuits, rental property insurance is crucial for landlords looking to mitigate risks and maintain a profitable rental business.

What Is Rental Properties Insurance?

Rental properties insurance protects the policyholder from risks accompanying the rental of owned property such as a home, condo, or apartment. The policy provides coverage in the following instances:

Damage to your property
Personal injury occurring on your property
Covered issue causes the property to become uninhabitable

What Does This Insurance Policy Cover?

Landlord insurance frequently covers the following issues:

Dwelling Coverage

Rental properties policies cover damages to the building that are covered by stipulations in the policy, including fire, hail, and wind.

Liability Coverage

This coverage provides financial protection if someone deems you liable for medical expenses or property damage associated with the rental property. Liability coverage also takes care of legal defense expenses and any relevant liability costs if someone targets you in a lawsuit.

Loss of Income

If a loss from a covered issue renders your property un-rentable, direct or optional coverage may be available.

Personal Property

Property renters can receive insurance coverage for items at the property that are available for tenant use (such as lawnmowers and appliances).

Who Needs Rental Properties Insurance Coverage?

Rental properties insurance benefits anyone who rents out a property they own. If the property is mortgaged, your lender may require proof of insurance to fully protect their asset. Landlord coverage helps shield you from financial losses due to property damage or significant personal injuries that may occur on your premises.

How Do Homeowners Insurance and Rental Properties Insurance Differ?

Both homeowners insurance and rental properties insurance protect property from fire, vandalism, and weather-related damages. However, when someone rents a property out, exclusions to homeowners’ policies sometimes apply. Landlord policies offer additional coverage for loss of rental income if the structure becomes uninhabitable. They also cover liability issues for injuries on the property. Rental properties insurance typically does not cover the contents of the building, so it is crucial to understand what types of insurance are needed to ensure total coverage of your assets.

How Much Does It Cost?

The cost of rental properties insurance coverage depends on some specific details. Determining factors include the following:

estimated replacement costs
location of the rental properties
size and type of property
amount of rental activity
optional coverages
deductible

About Byrnes Agency

At Byrnes Agency, we offer insurance solutions that can be tailored to meet your specific needs. Whether you’re looking for personal policies or commercial coverage, we have the right coverage for you. To learn more about our products, contact us today at one of our two locations.

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Dayville Office

Phone: (860) 774-8549

394 Lake Rd

Dayville, CT 06241

United States

info@byrnesagency.com

Hours of Operation: Monday- Friday 9:00am-5:00pm

Norwich Office

Phone: (860) 886-5498

6 Consumers Avenue

Norwich, CT 06360