Owning a property can be a great investment, but as a landlord you take on many risks. You have to consider if you have enough insurance to cover damage from unexpected events, like a fire. Also, would you have enough coverage if someone injures themselves on your property? Make sure you get the quality rental insurance coverage you need.
Why do I need insurance for my rental property?
Renters insurance is likely needed by your lender if you have an existing mortgage on a property that you are renting out. Your lender will typically require this in case any severe damage happens so that they can recover the original cost of the property.
As a landlord you could also be liable for any injuries sustained by to your tenants or visitors. Allstate can help walk you through the coverage you may require for your rental needs.
What coverage would I receive with my rental insurance policy?
- Dwelling Protection
This covers the home in which you live, as well as other structures that are attached to it, such as a garage or a deck. This is restricted to named perils only (e.g. fire, wind or smoke).
- Detached Private Structures
Renters insurance also extends your coverage to other structures that are on your property but are separate from your home, like a detached garage, shed or fence. This coverage is also restricted by named perils only.
Liability coverage is extended from your Allstate home, tenant or condo policy. It protects you if you’re held legally liable for injury or death to someone on your property.
What are some types of optional rental insurance coverages?
- Earthquake Damage
You are covered for any direct loss to your property due to an earthquake. This includes the dwelling too.
- Sewer Back-up
This covers any loss as a result of escape of water from a sewer, drain, sump or septic tank up to the limits specified. Sewer back-up coverage is not available in all locations. Please contact your local Allstate insurance agent to find out more.
This coverage can be added to cover appliances in the rented dwelling (e.g. fridge, washer and dryer).
- Rental Income
If your tenants need to leave the property due to a covered loss, fair rental income replacement is covered.
Allstate’s top 5 renter’s insurance tips!
- Make sure you purchase an insurance policy before starting your search for a tenant.
- List your property in different ways so you can get the exposure you need. This includes posting on websites, placing an advertisement in your local paper, or by word-of-mouth.
- Provide an application form to potential tenants that outlines rental terms and conditions.
- Run a background and credit check on prospective tenants to ensure they have a solid history of making payments on time.
- Perform a move-in inspection with any new tenant to document the condition of your rental property. That way, there are no surprises down the road in case something does not function properly or is damaged.
How can I get a property insurance quote?