How Can Insurance Protect a Home That Is Rented Out?

If properly designed, homeowners insurance can provide adequate protection for rental properties. Listed below are some of the coverage options a good homeowners insurance policy can offer to a home you are renting out, brought to you by the insurance experts at Tri-Star Insurance San Diego.

Liability

Nothing is more important than liability insurance for protecting a rented home. Liability insurance is designed to protect against personal injury lawsuits, which can sometimes cost millions of dollars. Some policies also cover such things as attorney’s fees and court costs.

Fire and Severe Weather Events

In addition to fire, this type of policy typically protects against strong winds and hail. It usually covers the cost of repairs or replacement, depending on the policy. The premium will most likely depend on the amount of deductible selected.

Vandalism and Malicious Mischief

Vandalism insurance is especially useful for structures that go unoccupied for long periods of time. Properly put together, this insurance can protect against damage to a dwelling caused by both residents and nonresidents. It also can provide protection against fires that are deliberately set. Malicious mischief sometimes includes illicit or unlawful activities conducted within the premises.

Equipment Failure

The time will likely come when your tenants call to complain about something not working in the house. This type of insurance can protect against large repair costs to equipment. It usually includes such things as furnaces and major appliances.

Loss of Rental Income

If a homeowners insurance policy is specifically designed to protect a rental property, it may also contain a clause that protects against loss of rental income. This is especially important in the event the home cannot be rented because of a fire or other catastrophe.

Landlord Insurance

Standard San Diego home insurance policies may not provide the protection described above. In some cases, it may be necessary to secure landlord insurance or a homeowners insurance policy specifically designed for a rental home.

Homeowners insurance isn’t our only area of expertise. For quotes on affordable San Diego health insurance, car and motorcycle insurance, and commercial insurance, call American Tri-Star today at 619-272-2100. One of our agents would be happy to assist you and give you a free quote.