As the CEO of the Insurance Office of America (IOA), Heath Ritenour has seen first-hand how a wise investment can turn into a soured experience without the right insurance policy attached to it. An industry professional with decades of experience in the field, Ritenour is eager to help potential landlords find the right insurance policy for their investments, tenants, and themselves.
Today, we are going to take a closer look at some key insurance insights associated with Landlord Insurance Policies.
Who Needs Landlord Insurance?
Insurance expert Heath Ritenour wants property owners to understand that there is a difference between landlord insurance and homeowners insurance. While carrying homeowners insurance is important, it is a mistake to assume that this policy will protect their rental property from potential damage. As there are many intricacies within the insurance field, it is important to better understand what DP3 insurance actually is.
Landlord insurance is specially designed for residential property owners and investors renting out their structures to tenants. Heath suggests that landlord insurance coverage is always a good idea, even in the event of a short-term lease. Ultimately, there is no accounting for the future so the best thing we can do is protect against it today.
What Will My Landlord Insurance Cover?
Any consideration of a rental property must account for the potential damage and losses that come along with it. According to Heath Ritenour, landlord insurance can help to provide protection against specific dangers that are intrinsic to rental properties. Some of the most common concepts covered by landlord insurance include property damage, liability claims, and loss of income.
Imagine a long-term renter suddenly needing to depart from their unit. In the event of this sudden departure, a landlord would be left without a source of income. Landlord insurance would serve to cover this lost rental income in the event that at tenant leaves due to a loss.
Property damage is also a common reason for landlord policies as they cover structural damage due to vandalism, fire, and even inclement weather. Additional coverage can be pursued for individuals in particular areas, such as those prone to wildfires, floods, or vandalism.
Common Policy Exclusions
While landlord insurance policies can provide quite a bit of coverage, they won’t handle everything. There are a few common exclusions that Heath Ritenour wants to make clear for his landlord clients.
Typically, a landlord insurance policy will not cover broken-down appliances. Instead, these appliance repairs are often paid out of pocket by the landlord if other arrangements cannot be made. Additionally, landlord insurance will not cover the personal belongings of a tenant, even if those belongings are destroyed by an otherwise covered event. Heath Ritenour also makes it clear that landlord insurance is not available for individuals renting out only a portion of their homes.