Knowing About Rental Property Insurance Coverage

​Having a residential or commercial rental property requires many responsibilities, especially in protecting your assets and tenants. Adequate rental property insurance provides more than just protection and ensures smooth flowing income and minimal liability costs. Learn more about what rental property insurance covers to get the most suitable insurance policy for you.

Physical Structure Coverage
During natural disasters, this coverage protects your property's structure like roof, walls, and foundation. You could file a claim if a typhoon damaged your rental property. It also covers areas like maintenance buildings and parking lots inside your rental premises.

Liability Coverage
This coverage deals with legal costs and medical expenses when a guest, tenant, or a customer of the tenant in your property sustains an injury. Liability coverage does not cover daily accidents like slipping unless the rental property mishaps (like a leaking roof) caused the accident.

Optional Endorsements
Aside from the two coverages, you can also add these endorsements to protect your property even better.

• Equipment breakdown coverage: covers the repair and replacement costs of damages during power surges or any equipment breakdown.
• Fair rental value coverage: covers lost rental income if the property became uninhabitable because of a covered incident.
• Personal property coverage: necessary to covers your (landlord) personal items against theft or damages
• Tenant move-back expense coverage: covers costs for moving relocated tenants back to your rental property after construction caused by a covered accident
• Air conditioning or heating loss reimbursement coverage: covers liability fees during heating or air conditioning loss where some local laws may require you to reduce your tenants' rental payment.

Rental Property Insurance Considerations
As a landlord, you must consider the following matters when deciding what rental property insurance coverage and the premium you need. Here are some issues you need to ponder: 

• Furnishing appliances
• Range of covered property
• Protection for rental income
• Choosing between replacement cost and cash value insurance
• Injured guest or tenant liability

Conclusion
Rental property insurance offers flexible and comprehensive coverage with its additional endorsements. To minimize insurance costs, choose the most suitable policy for your rental conditions while requiring your tenants to share liability risks with their policies.

At Family Auto Insurance Agency, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (313) 285-9042. Get your free quote today by CLICKING HERE.