57 Tandberg Trail Ste 7, Windham, ME 04062 (207) 893-8184
57 Tandberg Trail Ste 7, Windham, ME 04062 (207) 893-8184

What is Rental or Income Property Insurance?

Property Insurance – As a property owner or landlord, you take risks by letting others live in your space. Not only do you risk them doing damage to your property, but you also take the risk of them possibly becoming injured on or because of your property. Rental or income property insurance is designed to protect against these risks and to give you the coverage you need to continue renting your space successfully even when everything doesn’t work out perfectly.  

Rental insurance is available through many national insurance companies, and this policy is highly customizable as well. It’s possible only to get protection against the primary liabilities you may face or to increase your security to cover all the potential costs and issues you’ll encounter as a landlord. Only by working with an experienced insurance expert can you get a policy that is protective enough and that covers the specific issues you’re facing. 

Why is Tenant or Income Property Insurance important?

When renting out a piece of property, people move in and around that space all the time. This is a daily risk and when something goes wrong, that impacts your bottom line. Tenant insurance or income property insurance is protection against these potential issues. This insurance is meant to safeguard the property owner from liability lawsuits and help with significant damage to the property itself caused by the tenants or natural disasters.

Common things that are covered by such policies include damage to appliances, the plumbing system, fixtures in the home, water heaters, roofing and other significant areas of the home. These are all parts of the property that are expected to wear out and go bad eventually, but that can be covered against accidental damage and malfunctions under some policies. Since these areas of the home can be costly, it’s beneficial to have that added protection to prevent you from suffering from unexpected emergency repair costs.

Natural disasters are another fundamental area of concern for rental property holders. A lightning strike could do severe damage to the electrical lines throughout the house, while a fire could leave you without a home to rent at all. Hail storms can irreversibly damage roofing, and there are always risks for you to consider that can impact your investment in profound ways. Not only do these policies help with making necessary repairs when something goes wrong, but they can protect you if a tenant is injured in your home. You can also stay protected if you lose out on rental income for a long period of time because of something going wrong with the home that’s covered on your policy. 

Who is Tenant or Income Insurance made for?

As a landlord or property owner that’s renting out a home, apartment, condo, or another type of property, tenant or income property insurance is for you. This form of insurance is protection for anyone that’s renting a space for money that they own. If you own a property and you depend on it to generate income for you, it’s worth spending a small amount each month to protect that property with insurance. 

Property owners who don’t rent out their properties or have vacant spaces for extended periods may not want to use this form of insurance. Tenant insurance can be more costly than a basic home insurance policy because it considers the additional risks that renting a space creates. Most landlords and property owners that are running a real estate business can benefit from this insurance, though. 

Income property or tenant insurance is a critical investment that can seriously impact your ability to run a successful real estate business. With the right insurance policy, you are more protected, and your business is likely to be more stable overall. With the wrong policy, you open yourself to serious risks. It can be difficult finding the right policy, though, which is why it’s important to make sure you’re working to track down the suitable options for you. You can do this by talking with many different insurance companies and getting quotes yourself, or you can work with a local agent you trust to explain your options and get help faster.