Rental dwelling insurance… can minimize the owner’s risk

Nov 19th, 2010 | By | Category: Market Update

Lardlord Policy Sahuarita | Mark Heltemes | The Sahuarita ConnectionBy Mark Heltemes State Farm® Agent

For most people, rental dwelling ownership means a big investment with special risks. Buying a rental dwelling is a big undertaking and as an owner you need to make sure that you are adequately protecting your investment. You’ll want to make sure you have coverage for your property, your liability and loss of rents. The main components of rental dwelling insurance policy include: the dwelling, personal property, business liability and loss of rents.

Dwelling
Provides coverage for accidental loss to the building and other structures attached to it like a porch, garage or fence. If there are detached structures on the property, make sure to clearly define their use. If the structures are used for commercial, manufacturing, farming, or if your tenant decides to use them for any of these purposes or other business purposes, a standard rental dwelling policy may not cover losses arising from these activities.

Personal Property
Keep in mind, personal property includes items such as appliances, maintenance, and service equipment owned by you. If your rental dwelling policy does not include this type of coverage, you might be exposed

Business Liability
This important coverage insures you against bodily injury, personal injury, or property damage resulting from the ownership, use or maintenance of the property. These types of claims are the ones that could affect you and your family for a lifetime if you are not properly insured. Business liability may also include coverage for the cost of legal defense.  Do you know the coverage limits on your current rental dwelling policy? If you don’t know the answer, I’d suggest you start your research today.

Loss of Rents
This coverage reimburses the fair rental value of the dwelling for up to 12 months if your rental dwelling is left unfit for occupancy due to a covered loss. Does your current policy cover you for the loss of rents due to unforeseen circumstances like a fire? It’s an answer you should know.

There are additional coverage’s included in a rental dwelling policy. You can call me to discuss these options. Please check your policy for a complete description of coverage and loss or damage not insured. Many investors have questions when taking their first steps to own a rental property. As a State Farm Agent, I’m here to help you through this exciting experience. Call today 520.399.2200 or email Mark at mark.heltemes.nnrc@statefarm.com

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