When it comes to protection of your home insurance plays a very important role and while many landlords suffer from problems due to their tenants, landlord insurance becomes a necessity when it comes to protecting the house as well as the landowner. However, there are some misconceptions and myths regarding landlord insurance which makes it very confusing for the common people. So here are 4 myths about landlord insurance which many homeowners are not aware of.
Myth 1: My Home Insurance Will Cover My Rental Insurance
Although some of the liability might be covered by your homeowner’s insurance it’s a very risky situation for a landowner. For example, if the tenant damages your apartment then your normal home insurance will not cover those damages. On the other hand, If the rental is for a few weeks, then you might get away with a standard home insurance policy, but if it’s for a long-term, then you need to notify your insurance agent of the change in property usage and will require a landlord insurance.
Myth 2: As I Am Renting To Family So No Insurance Is Required
It’s always better to let someone known to stay in your house rather than some stranger. As renting to family members has its advantages but sometimes it can also lead to some complications. For instance, your insurance policy might cover your property from fire, flood or theft but what if your family member gets injured in your house due to your negligence. He or she might file a claim against you for not maintaining a safe environment for tenants which can mean real trouble for you. Having a separate landlord insurance protects you from such claims.
Myth 3: I Don’t Need To Notify My Agent When My House Is Unoccupied
Some landlords believe that since an unoccupied rented house is a common issue, they don’t need to notify the insurance company but the general rule is to notify your insurer whenever the house is vacant. Your agent will take into account the time you need to search for new tenants and will only cover for a specific period. Usually, 60 to 90 days is a general limit set by most landlord insurance companies and if you need more time than that, then you need to discuss your options with the agent.
Myth 4: The Insurance Will Cover Everything In My Property
Although a typical insurance covers your building from damage, you also need to protect your belongings. Which is why you need to add the contents insurance clause in your landlord's insurance. The contents insurance helps to protect your expensive possessions from damage or theft by tenants. This clause is especially necessary when you are renting out a fully furnished apartment.
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