Courtesy of Exclusive Insurance.
Insure the money - It is our experience that landlords acquire revenue properties to generate revenue! If your rental property suffers an insured loss that displaces your tenant and results in downtime you can receive replacement rental income.
Not all insurance policies are created equal - A very likely cause of damage is tenant vandalism and you can purchase coverage against this peril! So, when your tenant’s house party results in several broken windows and doors you can limit the out of pocket expense and submit a claim.
Vacancy restrictions - Be advised if your unit is unoccupied the perils of glass breakage, water damage and vandalism are excluded. Perhaps consider engaging a property manager to check on the premises daily?
Subrogation - If your insurer settles a claim, they reserve the right to seek reimbursement from the responsible party. Exclusive Insurance Solutions recommends all renters obtain tenants’ insurance. For as little as $60 annually their own policy would include liability to protect them in such an instance. Some insurers are requiring tenants provide proof of insurance before considering the prospective landlord.
Contents - Landlords may want to consider coverage for appliances such as the washer, dryer, stove, refrigerator and dishwasher. Although repairs are affordable, the cost to replace the full suite of stolen appliances can be distasteful.
Policy terms - Be sure to consult Exclusive Insurance Solutions for a clear understanding of the perils included/excluded and the settlement terms as they can vary greatly! After a serious loss is the wrong time to gain an understanding of the pros and cons of guaranteed rebuilding cost, replacement cost vs. actual cash value!
Celia Zurbyk, CAIB
President, Exclusive Insurance
204-298-9969