Rental Properties Insurance – Investor Guide to Rental Property Insurance – Rental Property Insurance Is Essential For Your Real Estate Rentals. Here’s What You Need To Know About Insuring Rental Properties… Hi, this isFrank Chen with, the only site you need as a real estate investor. Today I’ve got quick video on rental property insurance. Intro to Rental Property Insurance The type of insurance coverage landlords need falls under the umbrella term “property and casualty insurance”. We also encourage Landlords to look into Liability insurance, which i’ll cover a bit later in the video. Homeowners insurance mainly focuses on the coverage for the contents of the house, as a Landlord, you don’t really need that. You need rental property insurance. Rental property insurance policies are written for structures that are four units or less. Anything above that, becomes a commercial risk, which requires a commercial policy.. The policy is written as a package policy, meaning that it covers a number of what insurance companies refer to as “perils.” These are things like… – Fire, Hail theft, tornado, hurricane, wind, and water. – Also covers detached structures on the property like a garage or a storage shed. Important to have the appropriate rental insurance Insurance companies assume… (some items require liability insurance in order to be covered) – the risk for damages to your property – Covers you against any injuries or accidents that may occur (Note The Landlord is liable if he is negligible. So anything, that you
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Rental Property Insurance Essential for both Landlords and Tenants

Article by Nigel Bowden

Insurance is one of those expenses that most times, seem to show little in the way of return. Many people have insured something of value, such as property or chattels, for years on end, and never once needed to make a claim. Sometimes, especially if money is a little tight, they walk a little on the wild side, and let their policies lapse. The fortunate ones have nothing adverse happen, but in many cases the opposite is the case. This is especially true for rental property insurance, and the media often show stories of tenants who have lost all their possessions in a fire, and were uninsured. Every property owners must have insurance to protect what is usually the largest asset they own. If that property is used to generate rental income, it is even more essential that, as a landlord, the owner has a range of insurances in place, especially if the asset is under property management Christchurch control. When arranging insurance, a landlord must ensure that the policy they are taking out provides suitable cover for a rental property. There are policies available that cover not only the building but other issues relevant to the tenancy e.g. vacancy periods and damage by tenants. The landlord should discuss their requirements with the insurance company, as they may have to provide certain details before making a claim, such as up to date inspection reports if the claim is to do with damage by tenants. If the landlord has some of their own chattels stored at the property, or actually in the residence and being used by the tenants ie the property may have been rented as furnished, insurance on these chattels is the responsibility of the landlord and are not covered by the tenant’s insurance policies. These items should be listed on the tenancy agreement as being part of the property, so there is no disputing ownership when the tenant vacates. Insurance on rental properties is a must for tenants as well as landlords. The tenant should insure their possessions under their own contents insurance policy. The landlord’s insurance will not cover them. The tenant should also consider taking out personal liability insurance to cover them if any damage is done to the rental property either by themselves or their invited guests, either unintentionally or carelessly. Many tenants take out contents insurance but don’t bother about personal liability insurance. Christchurch real estate agencies that do property management recommend personal liability insurance for tenants as it can protect them from any claims by the landlord’s insurance company should the landlord have claimed for damages caused by the tenant. Insurances give people peace of mind. Provided the extent of the cover provided by the policy is understood by the insured, there should be no misunderstanding when it comes time to make a claim, through accident, misadventure or as a result of a natural disaster.

About the Author

Christchurch real estate instructs that insurance on rental properties is must for tenants and landlords.

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Related Rental Property Insurance Articles

Opt for the Best Residential Property Insurance to Protect your Rental Abode!

Article by Harmony

You might be a proud owner of several houses or flats that you want to rent out. Therefore, you need to protect all of them by choosing the right insurance provider. This implies shielding these properties from wreckages, sabotages, fire, or any other physical damage that might threaten them. To get the best, you have to choose the best residential property insurance. Why do you work so hard? You do it to live comfortably. And to live well you need to generate additional income from your residential properties that you rent out. You never know when a fire will create a havoc or a hurricane will sweep cities! Therefore, it is high time that you get your property insured with an all comprehensive residential property insurance.

The Initial Step towards Insuring PropertyThe first and foremost step towards insuring your residential property is to find an insurance executive having prior knowledge in this kind of policy. You have to find an agent who works independently, and helps you with the best packages and rates. The person who has been managing your personal insurance is not the person to help you out. He might not possess the expertise that you require. You are free to ask him whether he has the skills you are looking for. If yes, well and good, otherwise look for an experienced one having knowledge on residential rental homes.

Will You Get Enough Coverage? In case you are the owner of a few flats or simply occupying a flat of a multi-storeyed building, your policy might provide enough coverage. This can be done with an endorsement known as “additional residence rented to others”. It will work fine for a maximum of 4 different housing properties.

What Happens If You Own More than Four?In case you have more than 4 such properties, you are left with two options. You can either opt for an insurance firm that will create separate policies for each, or simply buy a commercial policy covering all your premises that you have rented out.

A Policy that Suits your NeedsThe residential property insurance you are opting for should actually pay for all the expenses of reconstruction or repairing. It should also cover additional expenditures related to upgradation of materials. If a disaster like fire makes the property uninhabitable, and results in the loss of rental earnings, then the policy should cover that as well. You should also get covered for any damages caused to fixtures or appliances.

What about Your Tenant’s Belongings? In case any belongings of your tenant are damaged, then the policy will not cover those. Tenants need to opt for a separate policy for getting coverage. I would suggest that you enlighten your tenants on the risks of not obtaining a cost effective renter’s policy.

Separate Policy for Natural Calamities If you reside in an area that is prone to floods or earthquakes, then have a word with your insurance executive. Tremors and floods come under separate policies.

Does the Policy Cover Physical Injury? When you rent out property to tenants, you should take some onus. Ensure that the policy covers physical damages as well as insult, defamation, illegal expulsions and discrimination suffered by tenants.

Opt for Discounted Premiums Insuring your residential property might also lessen your premiums, provided your insured house or flat meets specific parameters. You can lessen the amount of premium if your property is equipped with the following: – Fire and smoke alarms.- An alarm system that directly alerts the fire department or a central reporting unit. – Deadbolt Locks.- Modern fire extinguishers. Even if your property has been recently built, i.e. not more than eight years old, you can expect a discount for the new dwelling.

Good Customer Service It is finance that matters when opting for a residential insurance policy. Therefore, look for a company having good track record in terms of customer service and payment of claims.

On a final note, you should not renew a policy as soon as it expires. Analyze the coverage once more to check whether it still has all that you need. If no, move ahead and look for an insurance provider offering flexible plans at cost effective rates.

About the Author

Harmony general is a general insurance company based in Barbados. We provide customized insurance deal to our clients. Harmony General benefits you in a number of ways, among which, our articles over several directories provide you with insurance information you need.

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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.


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

About the Author

I’m Eric Madrid – owner of, 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.