- What is the difference between homeowner insurance and landlord insurance?
a: Both homeowner and landlord insurance cover damage or loss of your home. Landlord insurance will offer greater coverage and protection when renting out your property as well as prevent you from taking a loss in rent income while your property is being repaired. Liability insurance will protect you in case someone is injured on your property. While you can add liability insurance to your homeowner insurance policy, it is included with landlord insurance.
Both policies will protect you in case something happens at your rental property, however you will generally pay additional fees with homeowner insurance whereas landlord insurance has all of the coverage you need included.
- Will my insurance cover personal property inside of my rental unit?
- How much will insurance cost me?
a: Homeowner and landlord insurance costs will depend on several factors. Your policy could range from a couple hundred dollars a year to a couple thousand. Some of these factors include your geographic location, the size of your unit, whether you have a swimming pool, and the age and condition of your unit. Your coverage may be eligible for some discounts if you have sprinklers installed in your units, if your unit is located in a gated community, and if you have a burglar or security alarm installed in your unit.
Don’t forget that most companies also do a multiple policy discount. If you have several policies with the same company they will commonly offer you a small discount. Your insurance company may have several discounts available, you should check with them to see what’s available for you!
- Am I required to carry insurance on my unit and where can I get it from?
a: At Thousand Hills Realty our management agreement states that you are required to carry insurance on your rental property. Please contact us to verify our insurance requirements before getting an estimate for insurance. You are free to choose any company that you would like when finding a policy that works for you. It’s always valuable to shop around to find the best coverage for a price that works for you!
- Will my insurance cover any kind of damage?
a: Generally, neither homeowner insurance nor landlord insurance cover things such as flood or hurricane. You should inquire with your insurance company to double check what they do and do not cover when it comes to your policy. You may need to purchase additional coverage for these types of disaster.
- How can I be prepared if I have to make a claim?
a: Before renting your unit, you should take photos of the property. It is also a smart idea to take an inventory of anything you provided for your tenant if you offered a furnished unit. If an unexpected incident should occur, call your insurance company and take photos of the damage as soon as possible. Make sure you are as thorough as possible when describing the damage and the cause of the damage. It’s a smart idea to be present for any inspections that the insurance company may do to assess the damage. Once the claim is in process, keep in touch with your insurance company. They should walk you through the entire process and help you with any additional needs.
- Can you tell me more about renter’s insurance as well?
a: Read our renter’s insurance FAQ here.
a: If you provide your tenant with a furnished unit upon move-in then insurance should cover any personal property inside of your rental property. Most insurance policies for owners do not cover the personal property of your tenant. It is a smart idea to suggest that your tenants carry their own renter’s insurance policy to safeguard their personal belongings in case of a catastrophe.