Aside from all the hard work that goes into being a landlord — finding tenants, maintaining the property, etc. — renting out a property you own can be a profitable and worthwhile venture. Therefore, safeguarding this investment is important! With dwelling fire insurance, sometimes referred to as a dwelling or landlord policy, you can worry about one less thing by protecting yourself against a range of losses caused by things like fire, lightning, wind, and vandalism. Here’s what else you need to know about buying a dwelling fire policy for your rental property.
Who Is a Dwelling Fire Policy For?
A dwelling fire policy protects landlords if their rental property gets damaged.To be eligible, you must have an existing homeowners policy for your primary place of residence and cannot live in the rental property. Standard homeowners insurance will not cover rental properties.
What Does a Dwelling Fire Policy Cover?
With different dwelling fire coverage and add-ons to choose from, there isn’t exactly a one-size-fits-all policy. For example, you may choose to buy a very basic policy that only covers your rental property in case of a fire or you may prefer a more comprehensive policy that covers broader losses due to storms and direct losses caused by your tenant. It’s widely considered a smart decision to buy a policy that covers the broadest range of risks. For detached structures on the rental property like a garage, shed, or a fence, you may choose to add extended dwelling coverage. Overall, your individual policy will outline the causes of loss—called “perils”— that are covered.
Is Personal Property Protected?
Although a dwelling fire policy can include coverage for inside structures like the walls, ceiling, and flooring, and some interior elements like fixtures or built-in appliances, the policy doesn’t cover a tenant’s personal property, such as a laptop or jewelry. Landlords don’t typically insure the “contents” of their rental property. Therefore, renters should always consider buying a renters insurance policy to protect their personal belongings inside the dwelling.
Whether you’re a property owner or renter, a Personal Express Insurance agent can help you get the protection you need. Visit a neighborhood store near you or call 1-800-499-3612 for a quick quote today!