Perhaps you never intended to be a landlord but it all happened almost accidentally. You carry homeowners insurance but now you’ve decided to rent your property out for a year or so. Have you ever asked yourself, “Do I need landlord insurance?” The answer is yes. Once your home is considered an income property, your homeowners policy is not enough. You need to invest in landlord insurance, aka dwelling fire policy. Though the coverage may not encompass everything that a typical homeowners policy would, it will handle major events like fire or wind damage and theft.
Just like with any type of insurance there are different levels of protection and it is important to know just what you are paying for. Especially because you are going to pay, on average 20% more for landlord insurance. Keep in mind that this does not cover the tenant’s possessions and requiring that they obtain their own coverage is a smart move.
Bottom line is read the fine print and protect investment and protect yourself in the process.
Photo courtesy of Stuart Miles and freedigitalphotos.net