Getting Great Insurance for Rental Properties

Whether you are a first time landlord with a single property or have lots of experience with multiple properties, insuring your property correctly is crucial. As a landlord you must  protect you property against loss as well as the liability that may arise from a 3rd party or even the tenant. Here is a quick checklist of important coverages that you should be considered for a residential rental property.

  • DP-3 Extended Perils- To get the broadest coverage available you should consider a DP-3 which provides for extended perils including vandalism.
  • Replacement Cost- Always choose replacement cost coverage! In the event of a loss the property will be repaired for full replacement without depreciation.
  • Premises Liability- To protect yourself from a liability claim you should choose to carry premises liability with a limit that fits your needs.
  • Loss of Rents- this coverage provides for the loss of rent if you have a covered loss that forces the tenant to leave the property and stop paying the rent.

Personal Injury Endorsement- One of the fastest growing losses for landlords is a lawsuit from a tenant or past tenant for wrongful eviction, slander or defamation. These losses are not normally covered on a regular policy’s liability. Many companies are now offering “Personal Injury” protection as an endorsement on their policy. For under $25 a year this coverage is a must have!

F.A.Q.’s

What if my rental property is currently vacant? If your rental property is currently vacant you need to get a “Vacant Dwelling” policy. The policy is more expensive than if it were occupied. Prices have come down and you can now secure an annual policy without any minimum premium. So if the property becomes occupied a shorter time period you aren’t hit with a large premium.

Can I get discount on my policies for having a dwelling policy? Yes! You can save up to 5% additional on your home and auto policy by combining a dwelling fire policy. You can save up to 30% on your home and 25% on your auto for combining all your policies including dwelling fire.

Want to talk more?

Give us a call 661-327-5531 or email us agent@crosbyandcrosby.com .

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