A rental property is a solid investment that can provide additional income for you. Yet most property owners lack the right insurance coverage, placing their entire investment at risk.
Misconceptions about rental property insurance prevent landlords from getting the appropriate protection. Here are three common myths about rental property insurance debunked:
The most common mistake is when landlords assume a homeowners policy will cover their rental properties and their own home.
A homeowner's coverage may be sufficient for short-term stays such as a weekend or week-long stay. However, if you rent your home regularly or for long periods, you must take out a landlord's insurance policy.
Homeowner's or renter's insurance plans don’t cover business-related activities. A rental property policy can provide:
The policy may take different forms, depending on your specific needs. Consult an insurance broker in Florida to understand the various options available.
Landlords often assume that the renter is responsible for all incidents that occur in the rentals. However, it's your responsibility to maintain the property and keep it in top condition.
Renters' insurance policies that most tenants hold only cover their personal property. A landlord's insurance coverage can protect against accidental property damage.
Renting increases risks for you and the insurer, with additional responsibility for injuries occurring within your rentals. Renters are also less likely to identify or report any maintenance needs, necessitating a coverage plan that protects the property in case of damage.
While this myth is partially true, it's not entirely true. The basic coverage options may be similar, but the specific perils can differ depending on the policy.
Insurance companies offer many different types of policies. For example, some are more tailored to landlords who have a lot of properties and need to protect them all at once. Other plans might better suit landlords with just one rental property.
As a landlord, you need to ensure your rental property is safe and habitable at all times. Rental property insurance can protect your investment. The coverage may differ depending on your unique needs. Consult an Orlando insurance broker today to understand the right plan for your rentals.