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Insurance For a Rental Property – “What You Need To Know”

Article by Eric Madrid









Rental property insurance is very different than a homeowner’s policy. A standard homeowner’s insurance policy will not cover a rental property, as there are special considerations that you will need covered. Some landlords lie to insurance companies and tell them the property is owner occupied. Don’t do this! This is very risky, and could put you in very hot water.

How is Rental Property Insurance Different from Homeowner’s Insurance?

Homeowner’s insurance covers your house and the contents within. Rental property insurance covers the structure but it does NOT cover the tenants contents unless there are items that you will be providing for the tenant’s use (such as furniture.) Also, rental property insurance focuses more on liability and protecting you from lawsuits. Finally, there are clauses in most rental insurance that will protect you from the loss of rental income.

Why Your Tenants Need to Have Renter’s Insurance

It is a very good idea to require your tenants to purchase renter’s insurance. Your homeowner’s insurance does not cover your tenant or any of his or her possessions, so it’s really in their best interest. This insurance will also protect you from being liable for any health or property damages that your tenant may try to blame on you, as those items are covered. They will be compensated, and the tenant will not need to seek legal action against you.

Deductibles

If this level of insurance seems a little expensive for you or your tenant, then you can always try to obtain a policy that has a high deductible but a low premium. This works very well if you’re trying to protect a large number of relatively cheap items. On the other hand, if you or your tenant has some very expensive items, you will want a policy with a low deductible. Assess your needs and purchase a plan that’s right for you.

Final Thoughts

If both you and your tenant have the proper rental property insurance, then there is very little that won’t be covered in case something gets destroyed or stolen. You’ll also be covered from liability in the case of injuries or defects in your property. It’s always better to be safe than sorry, so know what you’re getting into if you decide to skimp on insurance. I highly recommend adding an umbrella policy to your regular home owners policy. This will give you even more protection from tenant lawsuits.

*If you enjoyed this article and would like to learn more then visit my website by clicking on the following link Working-Landlord.com



About the Author

I’m Eric Madrid – owner of working-landlord.com, Real Estate Investor, Landlord, Aircraft Mechanic, Author, Husband, and Father. As you can see I wear many hats, just like a lot of other landlords.










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Why You Need Vacant Property Insurance

Article by Jackie De Burca









There are both fortunate and unfortunate situations in which you would be well advised to take out a vacant property insurance policy. The unfortunate ones are sadly increasing due to our challenging economic environment, and these will include the loss of tenants, which can then turn your property into an ideal target for the less fortunate homeless people, as well as burglars and other criminal potential damage.

The fortunate situations cover inheritance, long holidays, moving part-time or full-time to a lovely sunny country. If you have a second home that you would prefer not to rent out then you will definitely need insurance vacant property.

Here is the next thing, how much time before an empty property like this is considered to be vacant from an insurance point of view? This actually varies, but to be safe it is best to realise that many standard insurance policies only allow up to 30 days of vacancy on your normal policy. Once you run over this amount of time, and ideally if you know that this is going to happen in advance it is best not to take any risks, especially in the difficult time we are living in. You should prepare yourself to find an insurance policy which specifically caters for a period of unoccupancy.

Common sense will tell you why insurers consider a vacant property to be a greater risk, as a target to criminals and the less fortunate. Additionally it is a bigger risk as it will be left unchecked for the likes of water leaks and electrical faults, either of which can be very damaging to the property.

You need to be aware that most standard commerial property or home insurance policies to not cover a building even if you feel you are just going on a long holiday. In fact failure to notify your insurer can end up in extreme circumstances that your policy becomes invalidated. If you are adjusting your policy for a period of two to three months then your insurer will apply some special conditions. This can include removing the cover for water damage, contents theft and malicious damage. This means that really even for a short term vacant property insurance situation you are better off to opt for the specialist policy adapted for this scenario. This means that the vacant building can be insured with full cover. However normally the policy will not include contents but will include fixtures and fittings.

It is advisable to source an insurer that can offer you flexibility. They should recognise that on many occasions a property could be empty due to the owner wishing to improve it with refurbishments, a period between tenants or a trip overseas. There are reputable, flexible insurance companies who can offer you three optional levels of cover, including the highest level of cover available within the vacant property insurance market.

Whether you wish to avoid an unfortunate situation, or you have come into a fortunate situation such as an inheritance, enough money to buy another property or a lovely long trip abroad, you should take out a suitable vacant property insurance policy to put your mind at rest.



About the Author

Jackie de Burca is co-owner of Creative Web Advertising, which is an International search marketing consultancy offering multi-lingual search marketing services Check this reputable company out as they offer flexible, different options for your vacant property insurance.










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When would you need a let property insurance quote?

Article by Richard Burgess







There are perhaps three situations under which you may decide to search for a let property insurance quote:

• you have just purchased a buy to let property and are looking for an appropriate let property insurance quote;

• you are currently an owner-occupier of a property but have decided to start renting it out in full or part (in which case, any existing owner-occupier insurance you have will become invalid and it will be necessary to seek what may be called landlord insurance or let property insurance cover etc);

• you are an existing landlord with buy to let insurance cover but wish to check whether or not your existing cover is still offering a cost-effective and appropriate solution in the current insurance marketplace.

Inevitably, when thinking about a let property insurance quote, price will figure high up on your list of priorities. Inevitable as that may be, it may be worth guarding against trying to interpret your landlord insurance quotation entirely upon price alone.

Different policies provided different levels of cover and it is typically a good idea to first and foremost evaluate the quotation in terms of its suitability for your needs.

Reading a policy’s cover for the first time, only in the event of a claim, is not advisable!

As a general rule, though there may be exceptions, a typical landlords’ insurance quotation (the terms landlords insurance, let property insurance and buy to let insurance, are typically used interchangeably) will provide cover information relating to:

• the structure of your property, typically including its fixtures and fittings (though it may be worth noting that these days not all policies offer subsidence cover as standard);

• its contents (e.g. furniture);

• your exposure to being sued by your tenants under the third party liability claims – though note, this will typically not include legal disputes relating to eviction formalities or the recovery of rent arrears etc.

Some landlords’ insurance policies may provide additional elements of cover relating to things such as:

• a loss of rental income, if this arises due to an insured risk;

• malicious damage caused by your tenants;

• trace and access cover (these cover some of the costs that you may incur if you have a tradesperson dismantling elements of your property while trying to find the source of a problem);

• potentially higher risk tenants (some insurance policies may not cover certain categories of tenants including DSS tenants and students etc).

All of these things should typically be highlighted within your let property insurance quote. If they are not, it may be highly advisable to read the supporting policy documentation prior to deciding whether or not the quotation is one that you wish to progress with.



About the Author

Richard Burgess is Director of cover4letproperty (http://www.cover4letproperty.co.uk) a dedicated UK landlord insurance broker. Their easy to use site and friendly staff will get you multiple quotes from specialist insurers for landlord insurance at a competitive price.

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