If you own a home, you probably have home insurance. If you own a business, you probably have that insured as well. But what if you own a rental property? What kind of insurance does that require? It’s not technically a home nor is it a business in the traditional sense. Thus, you’ll need apartment complex insurance. Here’s what you need to know to insure your rental property.
As a rental property owner, you’ll need a special type of insurance policy. This is known as landlord insurance. Each individual policy is different, but you’re looking for three main areas of coverage with this policy: general liability, property damage, and loss of rental income. We’ll cover these three areas below.
General liability protects property owners from lawsuits. This can include medical bills or legal costs if someone were to experience an injury on your property. It can also help you in case they accuse you of discrimination. For example, let’s say someone is walking into their apartment. As they’re walking, they slip and fall on a patch of ice, breaking their wrist. If you don’t have general liability insurance, you may be forced to pay that person’s medical bills. Someone who alleges discrimination on your part may force you to defend yourself in court. General liability should cover those legal fees.
This coverage is a bit more straightforward. It covers any damage to your property through various means. Each policy is different, but the covered events will be specified. These can include fire damage, wind storm damage, earthquakes, electrical problems, vandalism, vehicle damage, or tenant damage. You can decide whether you want to be reimbursed for the replacement value of the damaged property or the actual cash value. The premiums will likely be higher on replacement value coverage.
Lost Rental Income
If you can’t rent out your property, you’ll be missing out on potential income. Lost rental income coverage is meant to mitigate that. If you have an apartment unit that is uninhabitable because of mold, termites, or other reasons, lost rental income coverage can keep you afloat. This also applies to tenants who can’t or won’t pay their rent. Thus, you won’t be missing out on rental income while you attempt to work out a solution with your delinquent tenant.
Maintaining a rental property can be a difficult and taxing undertaking. However, having the right insurance can make things more manageable and set your mind at ease. If you need apartment complex insurance, contact us at Portal Insurance. To get a quote or schedule an appointment with one of our agents, call us at (252) 418-4724 today!