Protecting Your Rental Property
As a homeowner, you need home insurance to protect your property. Sometimes it’s not told how to protect your rental property, which is also a valuable investment. Regular homeowner insurance does not subsidize your home rent. You must purchase additional insurance for any losses covered by the policy. An agent can walk you through the process to avoid misunderstandings.
Make sure the home can be considered a rental
Different policies will have additional provisions on the definition of rent. If you’re not sure, you can talk to your insurance agent about your company’s specific terms. One of the most important considerations is whether the rental property has a second entrance. Information may also be required for renting out to family members or renting space attached to another building.
Require your tenants to purchase renters insurance
Although your policy may cover rental property, you cannot claim property damage on behalf of the tenant. It’s not a legal requirement, but renters insurance will protect your tenants from loss or damage. Your property will also get additional protection in case of certain natural calamities. Depending on your unique situation, there are other types of insurance you may want to consider purchasing for your rental property.
Number of tenants
Commercial Property Insurance: The number of tenants in a rental property is also a factor in whether you can use home insurance. If multiple families live on the property, commercial property insurance may be a better fit for coverage. A standard homeowner’s policy covers up to two families living in the home. However, coverage beyond that may be considered business under the insurer’s standards.
Coverage for potential damages
Liability Insurance: If you want to insure your tenants against property damage, then liability insurance may be the best option for you. While a homeowner’s policy will cover any damage to your property, liability insurance will cover renters if necessary. If you have to claim under this policy, you can recover the tenant’s medical and legal expenses if you are responsible. Since personal liability insurance may not apply to every rental property accident, it is recommended that you purchase a policy that does.
Includes items that may be left at the rental property
Personal contents insurance: As a landlord, you can give your tenants more than just access to and use of your property. If you leave belongings at home for tenants to use, you should consider purchasing personal contents insurance to protect your belongings while you are in the rental property. While this won’t cover your tenant’s private property (they’ll need to purchase renter’s insurance), it will protect your on-site property.
Your property needs protection from everyday threats. If you need help deciding which insurance in Mexico is best for your property (whether it’s homeowner’s insurance or another type of insurance), our trusted partners are here to help. are
