Did you know that rental property insurance, also known as landlord insurance, is a type of insurance policy that covers property owners who are renting out their homes? So what does rental property insurance actually cover? First and foremost, your rental property insurance policy covers you for the cost to repair or even rebuild your home. That includes any damage to additional structures that are located on the property such as a free standing garage or shed. It also covers property damage.
For example, if you have decorated your rental property with expensive art and or furniture, you need to ensure that those items are also protected. The property damage section of your policy protects your best interests in case any of your personal property becomes damaged or stolen. In essence, if a water pipe bursts in a house that you own and are renting to another party and destroys your personal property, your insurance company will cover the repair or replacement cost of those items. The same holds true if a fire causes any damage to your personal property.
If the house or condo is broken into and any of your personal property is stolen, the policy covers the replacement costs of those items as well. One of the most important aspects of your rental property insurance policy is the fact that it also covers loss of rental income due to an insurable event. For example, if a water pipe bursts or a fire causes any significant amount of damage to your rental property, your tenant will not be able to reside there until the damage is fixed. That means you won’t be able to charge them rent for the days, weeks, or even months that it takes to repair the property.
However, you’re still obligated to pay the mortgage, taxes and insurance. You may not be able to afford to do this without any rental income coming in. The good news is that your landlord insurance policy provides you with temporary rental reimbursement in order to cover your financial loss while your house or condo is being repaired or even rebuilt. Last but certainly not least, your rental property insurance provides you with liability protection. In essence, it protects you against claims and lawsuits.
For example, if your tenant or a guest of your tenant is injured at your rental property, you may very well be held accountable from a legal standpoint. Your insurance covers you for costs that are related to bodily injury claims including any legal fees and of course medical costs.
If you own a home in the Commonwealth of Massachusetts then you need to ensure that you have the proper insurance coverage in place. We can help you get the best deal on all of your personal and or business insurance needs. Please consult with a professional insurance agent that can answer your questions about all insurance related topics. It is important to fully understand exactly what you are buying when it comes to insurance policies.
If you have any questions, please call (508) 831-0133 to contact an associate at Zawada Insurance. We are happy to walk you through the details of your insurance policies and explain your coverage options. We look forward to helping you with all of your personal and or business-related insurance needs now and in the future.