FRIDAY, MARCH 17, 2017
If you own a rental property, you know that this property is a valuable source of income. Even though you might not live in the home, any damages or incidents there could still cost you. That's why it is important that you get the right insurance combinations for the property. Any owner should start out by buying a home insurance policy.
Still, the owner isn't the only person who needs insurance in the deal. Renters should also carry renters insurance to protect their own liabilities.
Many owners must realize that any insurance risks faced by the renter also can affect the owner. If damages happen in the residence, both the owner and the renter could lose money.
Most property owners require renters to carry a certain amount of renters insurance. But this coverage doesn't just protect the renter. A renters insurance policy will protect the owner from unforeseen risks, so it is often a good way for the owner to protect their finances. Also, renters insurance can help define if the owner or the renter is responsible for any damages.
Here are some more situations where renters insurance can be useful:
That said, if the renter intentionally causes damage, a renters insurance adjuster may deny a claim. In these cases, an owner needs to take appropriate steps to make sure that their own insurance will protect any damages and free the owner from blame in the accident.
- Renters insurance almost always includes personal property coverage. This covers items belonging to the renter that are in the home. For example, let's say a renter loses belongings in a covered peril. With personal property coverage, the renter will know that he or she can replace lost items. As long as the damage wasn't caused by the owner or the renter, the renters insurance will likely cover the damages. The renter won't run the risk of having to seek compensation from the owner.
- If someone takes legal action against your renter, for damages or liability claims, he or she can turn to his or her renters insurance policy for legal defense. Renters insurance puts an extra barrier in place to reduce legal risks to the owner.
- If the renter unintentionally damages the owner's property, renters insurance may pay for damages. Owners likely won't have to make a claim on those losses with their own insurance.
- Let's say a renter damages another person's property, such as that of a neighbor. The neighbor may try to claim insurance damages or take legal action. In this case, the renter's insurance should cover the incident.
Fulton Agency, Inc. can help you get the correct policy for your property. Call us at (954) 752-8610 for a free Florida rental property quote.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only.
It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional
in your state. By using this blog site you understand that there is no broker client relationship between
you and the blog and website publisher.