From arranging repairs to rent collection, landlords juggle a host of responsibilities of any given day. One key priority is making sure their rental properties are protected from the unexpected. Property insurance helps provide peace of mind. If you’re unsure whether your existing coverage is adequate or if you don’t have a policy in place, here is are several questions to ask an insurance provider.  

3 Questions Landlords Should Ask About Property Insurance

What does a standard policy cover?

Most plans provide coverage for property damage and liability situations. If an apartment or other leased property is damaged by a storm, fire, vandalism or theft, property insurance will pay for the repair or replacement costs. Liability insurance protects landlords from lawsuits filed by tenants and others who are injured on their premises. The policy typically pays for their medical costs, legal fees, settlements and other expenses associated with a person’s injuries. Neglect also falls in the liability category. If a landlord is found responsible for not making certain repairs and a tenant’s possessions are damaged as a result, liability insurance will cover any lawsuit claims.

Does insurance cover loss of rental income?

With most policies, rental income loss is covered only if the rental unit is uninhabitable because of a fire, water leak or natural disaster. The insurance policy provides rental reimbursement, which is the amount of rent you would have collected if the unit was in the proper condition to rent. Depending on the policy, there are limits to how much the carrier will provide for reimbursement.  

Are landlords required to have property insurance?

The laws vary in each state but generally, required coverage is based on the tenant’s occupation of the rental property. For instance, property insurance is required if the landlord does not live in the same space as the tenant. If you’re renting your home temporarily and the tenant is sharing certain common areas such as the bathrooms and kitchens, the homeowner will need to secure property insurance. Homeowners insurance will not cover any liability filings or damages caused by the tenant.

If you are a landlord, having reliable property insurance in place is worth the price. Without coverage, you will be responsible for paying for the repair and replacement expenses should damage occurs. The costs can be astronomical. Advantage Insurers in Demorest, GA, is your trusted agency for affordable and comprehensive property insurance. As an independent firm, the locally-owned agency can shop on your behalf from some of the nation’s leading carriers, including Progressive, CNA Surety and Travelers. For a free, no-obligation insurance quote, visit the website to submit a request. There, you’ll also find extensive information on the complete lineup of products and services. Should you have any questions, call (706) 754-1590 and a friendly agent will gladly assist.