Do You Own a Rental Property?
A number of people own more than one property choosing to rent out the second property as an additional revenue source.
Are there differences between the coverage on the principal residence and the rental property?
Are different types of coverage required for the rental property versus the principal residence?
In most cases the answer to both questions is – Yes.
Property owners should be asking some of these questions when reviewing the policy that offers coverage on their rental property.
- Is coverage excluded for vandalism by Tenants? If so, have you verified that your Tenant currently has renters insurance in place?
- How many individuals are occupying the rental property? Many insurers will consider 3 or more families a boarding house. This would mean increase premiums and limited coverage on the policy but if the insurer isn’t aware of the number of people renting and living at the premise, it could result in the insurer denying a claim.
- Do you have coverage for the loss of rental income in the event of a loss from an insured peril? If your sewer backs up and the tenants move out, will the insurer continue to pay for the loss of rental income? And if so, for how long?
To make sure you fully understand what is, and isn’t, covered on your current policy contact the knowledgeable staff at Broker Age General Insurance Services.
** NOTE: The information provided in this blog is of a general nature. It may not be specific to your particular situation. We recommend you consult our office for appropriate advice **
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