As an owner of rental property, it’s very important to make sure you and your tenant have the proper insurance coverage. A landlord insurance policy is different from the normal homeowner’s policy that you might have on the house you occupy.
There are a few features to look for when you’re buying insurance for your investment property.
Insurance for my Rental Property: Liability
iability coverage is the most important feature of a landlord policy. This insurance protects you against something that might happen at the property that’s out of your control. If a tenant has a dog and that dog bites the mailman or a guest falls down the stairs, they can sue you. Your liability coverage will protect you against that lawsuit.
Insurance for my Rental Property: Dwelling
Dwelling coverage is similar to the coverage you get in a homeowner’s policy. It protects the structure from damage due to storms, flooding, and other covered events.
Insurance for my Rental Property: Rental Income
A great feature to have is rental income coverage. If, for some reason, something catastrophic happens to your property and you cannot rent it out, you’ll be out of commission, and you’ll lose rental income. This insurance gives you some income during that period of time.
Insurance for my Rental Property: Umbrella Policy
Another feature to think about is an umbrella policy. Talk to your insurance agent about this option. If you own more than one property, you don’t want your other properties to be in jeopardy if someone sues you.
Nothing in your landlord policy will protect the tenant. Make sure they get a renter’s insurance policy of their own that will protect their belongings.
If you have any questions about rental property insurance or Northern Virginia property management, please don’t hesitate to contact us at Richey Property Management.