Buying Rental Property Insurance

1. Know What Is & Isn't Covered

To design a policy that fits your needs, you should know what a basic rental property insurance policy does and does not cover. For instance, policies may contain rental liability coverage that protects you in case you should accidentally injure someone or damage their property. The most basic policy will contain structure coverage that pays for losses due to fire and storms.  However, most policies do not cover damage due to flooding, vandalism, and theft. You may need specific coverage for those events, so consider whether your property requires special coverages. For example, is the property in a flood plain?  Then you may need special coverage to insure yourself from financial loss owing to their occurrence.

2. Consider Deductibles

The deductible is the amount you pay toward a claim before your insurance kicks in. The higher your deductible, the less you pay per year in premiums. Consider how risk averse you are when buying a rental property insurance policy. If you want to be responsible for the minimal outlay once you file a claim, consider lowering your deductible and paying a bit more  in premiums.

For expert assistance designing a rental property insurance policy, contact Farmers Co-Operative Insurance in Vanceburg, KY. They have served farms and individuals throughout Lewis, Greenup, and Boyd counties since 1938. In addition to rental insurance, they also specialize in property, farm machinery, and fire insurance. To request an insurance quote, visit their website, or call (606) 796-2611.