As a Roseville landlord, you’re working hard to provide a safe and habitable home for your tenants. The insurance you carry plays a big part in keeping your property safe and in protecting your investment.
Hopefully, you have a great insurance agent who can help you review your coverage annually to ensure you’re protected. It’s important to continually revisit what you have because your property value changes from year to year and your rental home gets older. Performing routine inspections and prioritizing preventative maintenance will also help you keep your property safe.
If you’re renting out a property that was once your primary residence, you need to switch your homeowner insurance policy to a landlord insurance policy. Don’t opt for the least amount of coverage or the cheapest policy. A rental property is a major investment, and it carries a lot of risks. Make sure you’re covered for every possible loss.
Changing to a Roseville Landlord Insurance Policy
The main difference between your landlord insurance policy and the homeowner’s insurance policy you have on the home you live in is that your landlord policy covers the structure of the home and the costs to repair and replace it.
However, it doesn’t cover any personal belongings that aren’t yours.
Once you convert from a homeowner’s policy to a landlord policy, your own possessions are covered, such as appliances. But, your tenant’s personal items are not the responsibility of you or your insurance policy.
Roseville Landlord Liability
Perhaps the best reason to buy a robust insurance policy as a landlord is to cover any potential liability.
A good landlord insurance policy will also have a comfortable amount of liability coverage. This is important because anything can happen when tenants are living on your property. Talk to your insurance agent about the required or recommended liability limits. If something happens and you’re sued, you want to be protected. A tenant could fall down the stairs or a tenant’s guest could get injured in the driveway. You need to be prepared for any potential claim or legal action.
Loss of Rent Coverage
It’s important to cover yourself in case you have to move your tenant out of the property.
Suppose there’s a sudden rainstorm or a fire that makes the home inhabitable. Your tenants will not be able to stay in the home, which means you may have to put them in a hotel or another property. If they can’t live in the property for an extended time, you’ll lose a lot of rental income in addition to paying out of pocket for costs like hotel bills. If your landlord policy doesn’t already include loss of rent coverage, consider adding it.
Require Renters Insurance from your Roseville Tenants
Tenants should have their own protection and insurance. Many landlords are requiring a renters insurance policy before a tenant is permitted to move in. These are not expensive policies, especially if they have automobile coverage that they can bundle. Educate your tenants on the need for this coverage. Most of them don’t know that their own personal electronics, clothing, and other belongings aren’t covered by your insurance.
Additional protections are always available when you’re buying insurance for your rental property, and you should consider them carefully. Flood insurance and earthquake insurance can be important considerations.
An important thing to remember is that insurance premiums paid on your rental property are tax-deductible.
If you have any questions about how to protect your Roseville investment property, please contact us at Action Properties.
