If you own any rental property, you’ll want to get some insurance for it to protect it. Even if it’s small, it’s still a valuable asset. If something happens to the home, you will lose a lot of your livelihood since you won’t obtain rental income. Where can you get cheap landlord home insurance? How much of it do you need?
While it’s not a legal requirement, it is still vital for the protection of your investment. Even though the law might not make you get landlord property insurance, many banks and other mortgage lenders will require you to have it.
The policies for this type of insurance offer various types of coverage: dwelling, acts of nature, water and flood coverage, fair rental income coverage, and personal property contents. The personal property contents are a good idea if many furnishings belong to you and are part of the rental property.
However, suppose your rental home(s) are unfurnished. In that case, you might not need personal property contents as part of your cheap landlord home insurance. It depends on how much you want to protect interior features such as carpet and flooring. Typically, personal property contents in landlords’ homeowner’s policies only cover your contents and not the tenants. They have an option to purchase renter’s insurance on their own.
There are options to add different levels of coverage to your property, depending on what exactly you want to have coverage for. Each insurer is going to offer various coverage types and have its way of calculating the rates.
Cheap Landlord Home Insurance by Location
Depending on the property’s location, unoccupied property coverage might be a good idea. Suppose something should occur in the neighborhood that makes it a less-than-desirable place to live. In that case, it will be challenging to get good, responsible tenants. Or perhaps you own a rental property in a seasonal holiday spot and want financial protection during the off-season when there aren’t as many tourists and the vacation property stands unoccupied.
A few other optional coverage types that you can include in cheap landlord home insurance include legal costs if someone takes you to court, theft and vandalism, built-in features (fitted bathrooms and kitchen), and accidental damage tenants, and so forth.
Certain things such as equipment breakdowns and maintenance often are not included and will require you to pay out of pocket.
Regardless of where your rental home is, you’ll need at least primary, cheap landlord home insurance. Check all of the options for add-on coverage offered by each provider and learn how they configure rates and premiums. One company to check out, Lemonade Insurance, has an excellent offering at an affordable rate.