Insurance Eligibility for Rental Property Homes
Rental properties can be residential single-family homes, apartments, townhouses, or condos owned by an individual or investor who leases it to renters for regular payments. How do you know if your rental home would qualify for insurance coverage? There are several factors that may affect eligibility when it comes to obtaining rental property insurance.
Who owns the property? Insurers will need to know whether the landlord/ rental owner is a sole proprietor, partnership, LLC, Trust, etc. Insurance carriers have different insurance products, and some entities may result in the need for a commercial policy rather than a standard rental insurance policy. In situations like this, having an independent agent is an advantage because they can help you find the right insurance product and insurance company to match your specific needs. In situations like these, having an independent agent is an advantage since they know the insurance market, they can help you find the right insurance product and insurer to match your needs.
Does the rental property meet insurance guidelines?
Here are some factors that are important to review if the rental home is indeed “insurable”:
· Age of the home
· Where the home is located
· Age and type of roof and age and type of HVAC system
· Type of pets allowed; insurers will have restrictions on certain dog breeds
· Physical condition of rental home
· Who it is rented out to
· If there is a lease / rental contract in placed
· If this is a short-term versus a long-term rental
· # of units in rental property
· Claim loss history
· If this is a new venture
Keep in mind, rental homes just like primary homes carry similar insurance risks; losses to the dwelling, landlord property, loss of rental income due to a claim, liability insurance claims, and more. It is important to obtain the right insurance coverage to protect your investment. To learn more about rental property insurance, contact Paroubek Insurance at 920-347-9115.
Comments