A rental property is a significant investment, so be sure you have the necessary protection to prevent significant damage or other costly incidents. Whether you’ve just purchased a rental property or you’re curious about what your current landlord insurance covers, learn more about common coverage features. Turn to Insurance by Castle for more information and a free insurance quote. Also, keep in mind that the information provided below is an overview of coverages and your actual coverage or policy can/may vary.
Dwelling Replacement Cost
At its core, insurance for a landlord is about protecting your property. Your insurance policy should cover any losses due to a range of covered perils. Typical policies cover up to 150% of the total value of the structure to replace it entirely. Check that your policy covers common perils such as these:
- Fire and smoke
- Extreme winds
- Lightning
- Flooding due to plumbing issues
While these are the most common perils, there may be others covered by your policy. We can discuss perils covered by an insurance policy and discuss ways to add more coverage for known risks in your area.
Major damage to your property needs to be repaired promptly to avoid additional downtime. Your insurance policy ensures you have the necessary working capital for remediation and restoration services in California.
Additional Structures
In addition to your rental building, verify that your policy covers any other structure on your property. Fencing, swimming pools, detached garages and driveways are common structures covered in this section of your landlord insurance. Overlooking additional structures can be a costly mistake in the event of a natural disaster.
Personal Property
While you can’t insure your tenants property, choose a policy that covers your personal property in your rental unit. A fire, flood due to plumbing and other incidents not only damage the structure but also other property on the premises.
A common misconception is that a landlord can insure tenant property. While you may insure items you own on the premises, you cannot insure tenant property. This means that a tenant is responsible for covering their own furniture, clothing and other items. You can, however, cover appliances, landscaping equipment and other items stored at your rental property.
Injury, Medical Payments and Premises Liability
Tenants on your property may turn to litigation in the event of an accidental injury. Protect against the costs of a lawsuit or medical bills arising from incidents on your property with injury and medical payment protection. This area of protection also protects against slander, libel and invasion of privacy claims brought about by tenants.
These various policy features can vary depending on your particular policy. Work with a landlord insurance specialist to discuss common features and find out how you can keep your policy affordable without sacrificing necessary coverage in these areas.
Areas Not Covered by Landlord Insurance
While insurance for your rental property may offer a wide range of policy options, it won’t protect every issue. Here are some areas not usually covered by landlord insurance in California. Check with your insurance agent to learn more about your coverage options.
First, routine maintenance and usual wear on a property aren’t covered. You should budget to replace well-used items such as water heaters, carpet and paint. If an appliance is damaged from wrongful use or intentionally by a tenant you may receive coverage, but appliances that are broken from typical wear and tear aren’t eligible for insurance coverage.
Suggest renters insurance for your tenants. You can’t take out an insurance policy on their belongings, so it’s up to them to cover their own belongings. Renters insurance covers furniture, electronics, clothes and other valuables in your rental property.
Cover Your Investment With Insurance by Castle
Combine insurance policies to save money on your landlord insurance. Ask our team at Insurance by Castle how you can bundle landlord, homeowners, auto and other policies to reduce the cost of each. Consider installing protective devices or working with a property management team to enjoy preventative maintenance services that help you save money on owning your investment property.
Stay safe and continue to grow your rental business with peace of mind. Request a quote today from Insurance by Castle to learn more about our landlord insurance options. Discuss your situation with one of our agents and explore insurance options to avoid costly repair bills and to protect your investment.
