Most Commonly Asked Questions About Landlord’s Insurance

As a landlord, you have many responsibilities that you need to uphold. Taking care of the property and the tenants involve a lot of work. This includes finding the right insurance policy to protect your tenants, the property and yourself. Keep reading for common questions about landlord’s insurance.

What Kind of Insurance Do You Need?

If you live in the home and rent out one or more units within the property, you will need a home insurance policy. Many companies do not provide this type of coverage for three or four family homes. But with Northeast-Metro West Insurance Agency, we work with many different insurance companies to ensure that you can get the coverage you need.

How Does A Property Get Appraised?

Usually a home is valued based on the money spent to construct the building, including the cost of labor and materials. In most cases, the amount that the house was sold will be a different amount than the house is valued. A multi-family home is also appraised by the potential amount of income made through rental properties.

Does A Policy on a Multi-Family Home Cover Loss of Rental Income?

A good policy will cover up to one year of income lost due to damage done to the home. During this time, additional funds can be added to ensure that there is enough money to cover the costs of rent while repairs are being made. It is suggested that you understand exactly what your policy will cover so that it will supplement your income accordingly in the event that you lose rent for a time.

What Should I Require of Tenants?

It is suggested that you require all tenants to have renter’s insurance with at least $500,000 in liability coverage. As renter’s insurance is not normally expensive to have, your tenants should easily comply to this requirement. Keep in mind that policies for landlords do not generally cover tenants, so they need to have their own policy.

If you have more questions concerning landlord’s insurance, or other types of insurance policies, please check out Northeast-Metro West Insurance Agency for more helpful information.

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