Owning rental properties is a common form of real estate investment, enabling you to generate income from the properties you own but don't live in by allowing others to lease the space. It is common practice for landlords to require their renters to have renters insurance, but that doesn't mean you don't need to maintain your own coverage as well. This is commonly known as landlord insurance. Here's what you need to know.
Many renters insurance policies only cover liability and personal property, not the home or apartment itself. If a nearby tree falls on the property or a fire occurs due to faulty wiring in the building, these events likely won't fall under the purview of renters insurance, leaving you to foot the bill for the repairs. Having your own property damage coverage in place will help to cover the repair or replacement costs for the actual structure.
Although you'll likely require your renters to have liability insurance, it is still a good idea to have your own additional coverage. If someone is injured while on the property, the renters insurance policy may cover some of the medical costs, but if there is any shortfall, you as the property owner will be next in line on the list of people to sue. Having liability coverage in place will prevent the injured person from coming after your personal assets.
Generally speaking, landlord insurance tends to be more costly than standard homeowners insurance. Renting your property out to others inherently comes with a higher risk than living there yourself, which leads to the increased cost. However, it is typically a small price to pay to protect this valuable investment in your future.
If you own any rental properties, don't delay in getting in touch with us regarding landlord insurance. These properties are too valuable for you, both now and in the future, to not give them the protection they deserve. Our associates will be happy to walk you through how landlord insurance works to ensure you are getting the protection you need for the properties in your portfolio. Call us today at 480-336-9648 to learn more about your options and start the process. We'll help you protect your properties so you can continue investing in real estate with the utmost peace of mind.