The Realty Solutions Group is a property management company serving Alexandria and Northern VA. Our topic today is landlord insurance. When you convert your home into a rental property, your homeowners insurance will no longer cover you. A landlord or rental dwelling policy will provide the coverage you need and protect you from liability.
Coverage for Physical Damage
Your landlord policy will provide property insurance coverage for any physical damage to the structure of the home. This could be a problem that’s caused by lightening, hail, fire, wind, ice, snow or other perils that are covered by your policy. This part of the landlord coverage is very similar to the homeowners insurance you have on the home you’re living in.
Make sure your landlord policy also covers you for liability. If a tenant or a guest of your tenant falls down the stairs or gets hurt on your property, this insurance will cover your legal fees and any injury claims or medical expenses. Landlords are sued often, so liability insurance is not something to forget.
Loss of Rental Income
If a sudden catastrophe occurs and you’re not able to rent your property out because the house is being repaired or rebuilt, a landlord policy will cover your loss of rental income. This type of coverage is generally provided for a specific period of time and it must be a covered loss that is causing your rental income to stop. For example, you cannot file a claim because you decide to put in new floors or update your appliances.
It’s always a good idea to recommend that your tenants purchase renters insurance before they move into your home. Landlord insurance policies will not cover the personal property of your tenants. If there’s a fire or a snowstorm knocks in your roof, your policy will cover the structure but not the personal possessions inside the home.
Talk to your insurance agent about any changes you need to make to your policy when you’re converting your home to a rental property. If you have any questions about what you need, or you’d like more information on this topic, please contact us at The Realty Solutions Group. We’d be happy to help.