RENTAL PROPERTY INSURANCE BASICS
For those clients who own properties rented to others, we have several good markets that offer customized coverages to meet almost any need. Tenant occupied Dwellings, while having many of the same exposures as an owner occupied home, also have some special qualities that need to be addressed. Usually a Dwelling Fire policy is written to cover these exposures. From condos to single family dwellings to multiple unit buildings up to 4 units, we have the right policy for you.
Property Coverage – Dwelling (Coverages A & B)
Coverage for the building structure, any attached or unattached structures can be covered under Dwelling Fire policy. Like a Homeowner’s policy these structures are covered for most every peril, except Earthquake and Flood. Coverage is available for the Replacement Value of the structure(s).
Property Coverage – Personal Property (Coverage C)
A typical Homeowner’s policy provides a set amount of coverage for your Personal Property up to a certain percent, usually 70-75%, of the Dwelling coverage. That’s a lot of coverage….coverage that isn’t necessary for most landlords. The Dwelling Fire policy includes a small amount of Personal Property coverage, usually $2000-$5000, but can be increased to any amount necessary.
Fair Rental Value (Coverage D)
Fair Rental Value, or Loss of Rents, coverage replaces the Loss of Use coverage found in a Homeowner’s policy, but serves much the same purpose. If a dwelling becomes uninhabitable due to a covered loss, the policy will pay for the Rent value that cannot be earned during the uninhabitable period.
Liability Coverage (Coverage E)
The Condo Owner’s policy includes Liability coverage which provides protection from your legal responsibility or liability for injuries and damages that you may be responsible for. It also includes coverage for defense costs.
Medical Payments to Others (Coverage F)
Medical Expense coverage pays for necessary medical expenses incurred by others as a result of an injury that takes place in your home. This coverage is not available to you or your family members.