When you rent out your home, the homeowners' insurance you currently have might not provide the coverage you need. Depending on your provider, additional coverage could be required. If you are thinking of renting your home, here are some tips for ensuring you have the coverage needed.
Consider Personal Property Protection
If you are planning to rent the home as furnished, personal property protection can provide the coverage needed if the contents of your home are damaged. This type of coverage provides protection for items, such as the furniture, light fixtures, and curtains.
Even if the home is not furnished, having personal property protection could be worth it. Basic items, such as appliances and carpets, are covered if damaged.
Add Fair Rental Income Protection
Unfortunately, your home could be vacant for periods of time. If you are unable to find the right tenants, you could lose out on potential rental income. Fair rental income protection helps to cover the amount of lost rent if you are unable to rent your home due to a need for extensive repairs or a catastrophe.
There are limitations to this type of coverage though. You cannot receive payment for circumstances such as lost income due to eviction.
Consider an Umbrella Policy
An umbrella policy helps to cover expenses that exceed what your homeowners' and landlord policy cover. For instance, if your homeowners' and landlord policy only cover $25,000 of the expenses and the total expenses are $30,000, the umbrella policy would provide you with the additional $5,000.
Although this type of coverage is essential if you are only renting out one home, it can be even more beneficial if you have more than one rental property. The more properties you have, the higher your risk of experiencing damages that require repairs.
Opt for a Higher Deductible
A higher deductible on your landlord policy usually results in a lower premium. Your rental property will still be covered, but you can save money throughout the year.
It is important to note that if you do opt for a higher deductible, it must be met before the insurance company begins to pay for damages. To ensure that you are prepared to pay the deductible if necessary, keep that amount away in savings.
To ensure that you have the right amount of coverage for your rental property, work with an insurance agent, like those at Gayler Insurance. He or she can help ensure you have the coverage needed for both the home you reside in and your rental property.Share
7 January 2016
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