Old Bay Insurance Agency Blog
Rental property insurance is also known as landlord insurance. This plan is designed specifically to cover the risks you acquire by renting out a home. This coverage is not limited for long-time use, as it can also include a vacation home. It safeguards your finances from possible risks you can get from having your tenants reside in your property. In this article, we will tackle the basic coverage that rental property insurance provides.
What Does Rental Property Insurance Cover?
The rental property insurance varies its coverage and limit depending on your needs. However, the typical inclusions that rental property insurance cover are Dwelling Coverage, Landlord's Personal Property, Liability Coverage, and Loss of Rent Coverage. Each coverage is explained below:
Similar to homeowners' insurance, this type of coverage also covers the expenses in fixing your home. However, it will not include the content of the house, especially if it is from your tenants. Also, the coverage is limited to the mentioned perils in your policy, such as fire, lightning, and so on. Make sure always to review your coverage to ensure that this plan is included.
Landlord's Personal Property Coverage
Unlike the renters’ coverage, this type of plan covers the losses of the landlord's items. However, this event is not the same as the tenants' property. If a sewing machine of a tenant is damaged inside the rented home, the coverage will not cover the cost to fix it. However, if an agreed peril destroyed the same object owned by the landlord, then the fixes will be included.
This type of coverage ensures that you will not be bankrupt after being faced with a lawsuit case. If your tenant or visitor encounters an accident in your home or condominium, your insurance coverage will cover the legal and medical expenses to compromise with the victim. This way, you don’t have to take out the fees from your pocket.
Loss of Rent Coverage
In the case of peril, such as fire, there are instances that your house will be uninhabitable by you or your tenants. Hence, this coverage is made explicitly for the above-mentioned unfortunate event. The insurance company will pay you for up to 12 months' rent. However, always remember to check your policy as this is the commonly excluded coverage.
We also recommend adding this to your coverage as you’ll never know how much it will benefit you in the future.
At Old Bay Insurance Agency, Inc, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (410) 777-5390. Get your free quote today by CLICKING HERE.