At National Property Management Group Miami we specialize in renting and managing homes belonging to people who find themselves with property to rent but who don’t have the time (or desire) to be landlords. Maybe they’re just waiting out the housing depression to get a better price on their homes or they’ve been transferred to a new city but still want to retain their house. National Property Management Group Miami can take care of their homes so they don’t have to.
If this is your situation one of the things we recommend is landlord insurance, sometimes known as dwelling fire policy or special perils policy. Homeowner’s insurance typically covers owner-occupied, single family residences and the occasional weekend rental. But if you plan to rent your property for an extended period you really need to investigate and purchase additional coverage.
Protecting Yourself As A Homeowner/Landlord
Landlord insurance is especially tailored for rental property and may include:
-Loss from fire, robbery, injury, flood or other disaster, including any other structures on the property.
-Contents of the home that belong to you such as furniture you may have left behind. It doesn’t apply to your tenant’s property.
-Lost rental income. This is really important if your property is damaged and your tenant is forced to vacate. This can cover up to 12 months of lost income depending on your policy.
-Legal fees and liability protection. Let’s say someone is injured on your property, you could be liable. Most policies will cover your legal fees should a lawsuit result. It may pay out if you lose a lawsuit and may even protect your other assets or personal belongings. Medical expenses of the injured party might also be covered.
What Else Is Important To Know About Insurance?
Insurance for landlords will cost more than a homeowner’s policy, about 25% more, but several factors could influence your rate. Size of the property, building costs or replacement materials, the crime rate of your location or probability of natural disasters like hurricanes will be considered. The price is also influenced by the original condition of your home.
Speak to your agent about an umbrella policy as this will go further than conventional insurance to protect both you and your tenant. Inquire about additional liability coverage in case the limits of your other policy is reached.
Besides landlord insurance it’s also wise to require that your tenants purchase renter’s insurance. You should also review your own coverage with your agent each time a new tenant moves in. This will make sure you know about any changes in coverage or rate changes.
A good insurance policy will protect your assets in the event of disaster or other problems. It’s critical to have a policy in place long before you might need it and it’s also important to know exactly what your policy will cover. After a disaster is not the time to learn about shortfalls in coverage.
To further ease the extra work and attention a rental property will demand consult with a property management company. National Property Management Group Miami can take care of all the duties of a landlord such as proper screening of tenants or dealing with maintenance issues and take the worries out of being a landlord.