Generally, it is more difficult and challenging to insure rental property than it is to have your primary residence insured. That said, there are numerous insurance companies out there that offer some very good and affordable rental property insurance policy that even includes comprehensive protection and guaranteed building replacement cost coverage. A good insurance company should be able to customize your rental property insurance policy to not only meet but surpass your needs.
When choosing a service provider, always opt for one that offers you a comprehensive policy which means that you are insured against all types of loss except those that are specifically excluded. The most common exclusions in such a case include terrorism and war as well as flooding; both inland and coastal flooding.
A good rental property insurance cover should have several covers. A building cover (for houses only) is a must have since it does protect the main structure of your house as well as attached hot tubs, swimming pools and garages. A good policy will have you covered even if it does cost more to rebuild your home than it’s insured for. It should also be able to offer unlimited protection against cost increases from building code changes.
Premises liability is another cover that protects users against amounts you may be legally responsible to pay due to unintentional injury to someone else or even damage to their property due to ownership of the rental property. Other covers include condo property damage assessments (for condos only) that protects against amounts one has been assessed to offset any insurance deductible that the condo has to pay due to any loss or damage to any common property.
Other optional covers one can opt for include improvements, fixtures and glass. This cover does protect any upgrades made on the unit after it was originally built. This also protects any fixtures, countertops, flooring and even glass. Landlord’s property cover is also available and protects any property that you own and is located in a rental property. Another common cover is the rental income cover that protects the landlord against loss of rental income due to an occurrence which can be considered as an insured loss.
When choosing your policy, it is important to ensure that you fully understand the loss types which are covered by the policy and take note of those that are specifically excluded. This is important because if you end up with a policy that doesn’t cover an occurrence such as flooding, then you will have to rely on the several disaster financial assistance programs that the government may decide to offer. Some of the losses a good policy should have include broad water damage insurance, Earthquake insurance, Hail and Wind Insurance as well as Inland Flooding.
As a policy holder, it is important that you carefully review policy wordings before you sign the dotted lines. This will ensure that you fully understand what you are getting into, when in doubt, feel free to contact an attorney to shed some light on the document. Here are some of the most popular rental property insurance providers readily available in the market. They include but are not limited to the following:
1) Liberty Mutual Insurance
Mailing Address: 175 Berkeley Street, Boston, MA 02116
Phone Numbers: 1-800-426-9898
Web URL: http://is.gd/7oLRnJ
Types of Coverage: apart from the rental property insurance, it does also offer additional coverage such as home computer and smartphone coverage which provides additional covered causes of loss and blanket jewelry coverage.
Policy Deductible Costs: the company has a standard policy deductible that applies to all losses unless noted. The standard deductible options range from $1,000 to $5,000.
2) State Farm Insurance Company
Mailing Address: One State Farm Plaza, Bloomington, IL 61710
Phone Numbers: 888.559.1922
Web URL: http://is.gd/H9yi2d
Types of Coverage: the company does offer users other cover options on certain properties which may have a dollar limit. These usually include Jewelry and Furs, Gold ware and Silver ware, Trailers, Watercraft including equipment, trailers and furnishings as well as business property on and off the premise. They also offer cover on securities and other negotiable instruments.
Policy Deductible Costs: the firm has several policy deductibles such as Earthquake Deductible, Crime Deductible that’s between $5,000 and $10,000 as well as the sewer backup deductible that’s between $2,500 and $25,000.
3) Farmers New World Life Insurance Company
Mailing Address: 3003 77th Ave SE, Mercer Island, WA 98040
Phone Numbers: 1-800-435-7764
Web URL: http://is.gd/wEs5kQ
Types of Coverage: the policy covers your personal property and even covers you from liability claims when you are renting. In the event that the rented home ever needs or requires serious repairs, then you can rely on the policy.