LANDLORD INSURANCE / RENTAL HOME INSURANCE
Landlord insurance / rental home insurance includes several components:
- Dwelling
- Other Outside Structures
- Personal Property
- Loss of Rents
- Business Liability
The Dwelling is usually the biggest coverage. It is simply insurance to repair or rebuild the structure. It is very important to understand the difference from FULL REPLACEMENT COVERAGE and ACTUAL CASH VALUE when it comes to insuring your house.
FULL REPLACEMENT COVERAGE is enough protection to rebuild your rental home, similar, like & kind from the slab and up to the roof with today’s material and labor costs. This is not what the market value of the rental property is.
ACTUAL CASH VALUE is basically what the market value of the rental home is worth. This coverage does not take into consideration what it would cost to rebuild a new home of similar, like & kind characteristics. ACV is today’s market value.
Other Outside Structures is usually 10% of what the dwelling is insured for. This coverage is for separate structures such as the fence, toolshed, etc.
Personal Property is approximately 5% of the dwelling coverage. It is for the landlord’s personal belongings that pertain to the upkeep of the property:
- Ladder
- Lawn Mower, Trimmer
- Tools & equipment for maintenance/repair (adequate amount)
- Paint, light bulbs, etc.Loss of Rents is coverage for the landlord in the event that his tenants could not live in his rental property because of a covered loss or disaster. This coverage will help pay for the loss of rents realized during that temporary period for up to 12 months.Business Liability is insurance to protect the landlord of any unintentional actions that may have caused harm to somebody else arising out of the ownership, maintenance or use of a rental dwelling.
**PLEASE NOTE THAT LANDLORD INSURANCE DOES NOT INSURE ANY OF THE TENANT’S PERSONAL PROPERTY OR PERSONAL LIABILITY EXPOSURE. IT IS THE TENANT’S RESPONSIBILITY TO PURCHASE A RENTER’S POLICY FOR THEIR PERSONAL BELONGINGS**
As you can now think about the various components of the landlord insurance, this should help you determine your rental house insurance needs for your particular situation.
Please take a moment to fill out this form above and you will be getting a quote from a professional agent within 24 hours or on Monday if you complete this form during the weekend.