Landlord insurance policies differ from standard homeowners’ policies. Boise property management companies explain the significant differences between these two types of dwelling coverage.
Landlord- Landlord insurance policies are required for landlords that have investment properties or rent their primary residences throughout the year for additional income. Occasional events are generally covered by homeowners’ insurance policies and secondary home endorsements can also be added.
Coverage – There are several reasons why Boise property management companies advise landlords to obtain landlord property insurance. Some insurance companies offer compensation for Fair Rental Income, which is necessary in the event that rentals are subject to major disasters and are uninhabitable. Landlords are also subject to higher liability protection, which is necessary in the event of damage or injuries. These policies can help shield landlords’ personal funds from being subject to confiscation based on the outcome of litigation. Many of these policies include valuable liability protection, which helps provide necessary costs for legal counsel and required damage payments.
Limitations – Rental insurance can help protect against weather-related events, such as floods, sewer backups, water damage, and earthquakes.
Personal Property – Tenants’ personal property is covered by tenant insurance. This helps insure personal properties such as electronics, personal possessions, clothing, and possible vandalism protection.
Optional Coverage – Landlords can purchase additional policies that help offer peace of mind for rent guarantees, employer liabilities, natural disasters, and landlord contents.
Costs – Landlord insurance varies based on geographic areas and risks, structure size, the number of rental dwellings, the age of homes, electrical wiring, and much more.