You know you need insurance for your own property, but what about homeowners insurance for your rental property? If you’re renting out a room, your homeowners policy will probably do the job. But if you don’t live in the home you’re renting, you may need additional coverage. Consider these questions to determine whether homeowners insurance offers sufficient coverage for your rental property.
Homeowners Insurance for Your Rental Property
How Many Tenants Do You Have?
The right insurance for landlords is heavily influenced by the number of tenants in a property. Depending on the number of families that live in your rental property, you may not be able to write it under a typical homeowners policy. In some cases, a commercial policy will provide better insurance for your rental. A one- or two-family dwelling may qualify for a homeowners policy, but a larger dwelling might require a commercial policy. Your local Farm Bureau agent will be able to help identify which category your policy belongs under.
Is There a Possibility for Injury?
What if a tenant is hurt on your rental property? Liability insurance can offer better protection for your property in this scenario. This coverage could help you pay for resulting medical expenses or legal fees, especially if you are found to be at fault. Your own personal liability coverage probably won’t extend to your rental property, so be sure you have adequate coverage.
Do You Have Personal Property on Site?
If you provide certain items for your tenants’ use, like a lawn mower or snow blower, you will want to consider personal property insurance, which can help cover items you store on site. Note that this coverage won’t cover your tenants’ personal belongings — they’ll want to consider renters insurance for that!
Do You Need Help Covering Insurance Gaps?
Umbrella coverage can extend the protection provided by your homeowners or commercial policy. For example, if a tenant is hurt on your property and the medical bills go beyond what your liability insurance will pay, an umbrella policy can help bridge that potential gap. In many cases, umbrella insurance can improve coverage for your rental property needs.
To Insure or Not to Insure?
If you need help figuring out what insurance is required for your rental property, look no further than your local Farm Bureau agent! He or she can help ensure that both you and your rental property are protected from everyday risks.