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Rental Property Insurance to Protect Your Investment
If you own a property that you rent out to other people, it’s absolutely essential that you have the appropriate insurance to ensure you’re protected. Unlike tenant insurance, rental property insurance is focused on you, the landlord. However, the range of coverage provided under a rental property insurance policy can also benefit your tenants in certain ways, which allows them to feel more secure in your property.
Of equal importance is that even if your tenant (or tenants) has their own coverage, sometimes it may not be enough to cover things such as damage to the interior or exterior of the property. In this case, having your own insurance coverage can supplement theirs, offering both of you greater protection.
While rental property insurance plans can differ between insurance providers, some common areas of coverage may include:
If you rent out a home, the cover you need does differ to what you need for insuring a rental condo property. The two key points of cover for your home and associated property are:
With a limit based off the estimated rebuild cost of your home, this cover protects the main structure of your house, as well as attached garages and, depending on the insurer, swimming pools and hot tubs. This portion of coverage may also provide you with unlimited cover for any costs that eventuate from building code changes.
This option coverage is focused on accounting for any other structures on your property that are detached from your main house. These could include things such as standalone garages, gazebos, sheds, docks, etc.
Along with these two types of coverage, some insurers may even offer cover for landscaping, fences, and gardening equipment. However, this will depend on the insurance provider you go with.
For condominium owners, there are unique facts that need to be accounted for that homeowners do not have to deal with. As such, there are two important areas of coverage for those who own and rent out condos.
Condo Property Protection
When you own a condo, chances are you have to account for a condominium corporation. They are the corporation that looks after all of the condos, and as such carry insurance policies for the condo buildings, including the one you own.
In the event the corporation has to make a claim for the repairs of one or several condos, this can often require condo owners such as yourself to help pay an insurance deductible, which comes out of your own pocket. With condo property protection, however, your own insurance provider can handle the deductible for you. It can also be used for protecting you against repair costs of building and common areas that:
fall beneath the condo corporation’s property insurance deductible (e.g. the repairs will cost $20,000 but the corporation’s insurance doesn’t kick in until $30,000);
are not covered by the corporation’s insurance policy; or
result from a shortfall in your condo corporation’s insurance
This optional cover focuses on protecting any upgrades, additions, or alterations that have been made to your condo, whether they were made by you or a previous owner. This coverage can also protect counter tops, flooring, glass, or other fixtures that you are responsible for insuring under bylaws outlined by your condo corporation.
In the world of insurance, finding an affordable insurance provider that also offers good coverage is not an easy task. If you are looking for home insurance, car insurance, life insurance or health insurance, we can help you make the right choice.