Renting out a property can be very profitable, which makes it especially important for landlords to protect their investment. Landlord insurance provides property owners the financial peace of mind they need for renting out their properties.
Here is a simple guide to understanding insurance options for rental properties.
Much like homeowners insurance, landlord insurance isn’t a legal requirement. However, many mortgage lenders require landlords to get insurance for their rentals if seeking financing.
Landlord insurance offers similar coverages to homeowners insurance. Primarily, a landlord insurance policy will cover structural damage to the property. However, it will also cover loss of rent income if repairs cause the renter to move.
Landlord insurance doesn’t cover everyday damage from wear and tear. It also may exclude damage from certain perils, like earthquakes or floods.
The current state of your rental property can affect the cost of landlord insurance policies. This includes factors like the age of the property, location, size, amount of rental units within the property and the presence of on-site security.
For insurance providers, there is a higher level of liability when a property is being rented out to somebody other than the owner. This can make insurance pricey. However, having a policy specifically for your rental property can save you money in the future.
Speaking with an insurance lender can help you find the right policy to protect your best interests.
Phil Gilles
Direct: 239-425-5423 | Email: [email protected]
Donna Gilles
Direct: 239-425-5426 | Email: [email protected]
Donna and Phil Gilles are two of the most respected Pine Island Florida Real Estate Agents. Their dependability, honesty and integrity are truly a "cut above” in the real estate profession.
Donna and Phil started BlueWater Realty of Pine Island on September 11, 2002, realizing Pine Island was in need of a real estate family that was a step above the mass marketers that dominate the real estate profession. Donna and Phil’s in depth real estate training include: investment management, brokerage, marketing high-end homes, real estate law, ethics and practice.
If your immediate future requires counseling in the purchase or sale of real estate, please contact Donna or Phil. They are professionals who will work hard for you to help achieve your real estate goals.
