by Guest » Tue Apr 20, 2010 09:15 am
I'm trying to rent out my home in Chicago downtown. I've heard that the land lord insurance would protect me from damages caused by the tenants and provide rental income protection benefits. Is it true? What are it's major cost determinants?
Posted: Tue Apr 20, 2010 02:49 pm Post Subject:
A dwelling policy will address damages to just your property. I'm not sure about loss rent... I think this is only when the damage to the property does not allow it to be rented out. You need to speak to an agent about the type of policy and coverage you need.
You can also require that your renter have renters insurance. This would give you the ability to file a claim under their policy for any accidental damage to your property and/or allow your own carrier to seek recovery if they pay for any damage accidentally caused by the renter (such as fire damage, water damage, etc). Of course, they could always obtain the policy and then cancel it.
Posted: Tue Apr 20, 2010 03:50 pm Post Subject:
As tcope mentioned the loss of rental income is only payable if something happens to the home, such as a fire, and as a result you cannot rent it out while it is being repaired. It will not reimburse you if the home is just vacant while you are looking for a tenant.
Regardless, you will definitley will need a different policy to cover the home as a rental property, since it will no longer be your primary dwelling. The change in occupancy type could create a problem in the event of a claim if the company is not aware it is a rental.
Make sure the property is covered for liability to protect you against potential lawsuits.
One other thing to consider is adding personal injury coverage to your policy. This will provide coverage in the event a tenant attempts to sue for wrongful eviction. It is a very inexpensive endorsement to your policy and could provide important coverage if ever needed.
Posted: Wed Apr 21, 2010 12:35 pm Post Subject:
This will provide coverage in the event a tenant attempts to sue for wrongful eviction
If the tenant doesn't agree to pay the rent anymore, you'll need to file a legal complaint to get him evicted. Such legal costs are generally covered under.
Posted: Fri Apr 23, 2010 12:36 pm Post Subject:
There are a few other benefits attached to it. Suppose your tenant dies in the very first month that it got leased. Your loss in terms of the rental income would be covered to a certain limit.
Posted: Sat Apr 24, 2010 05:36 am Post Subject:
Suppose any of your tenants or their visitors steal any of your valuables without you noticing it. The cost of replacing such valuable items would be covered.
Posted: Sat Apr 24, 2010 06:41 am Post Subject:
Well, I guess you guys are discussing about rental protection over here.
I'd rather look at landlord's insurance as a means to protect our investments in the event we suffer from unforeseen damages.
Posted: Thu Apr 29, 2010 10:58 am Post Subject:
You are thinking right! though i am a newbie as far as insurance is concerned, and i am learning daily something new. Landlord insurance serves to protect landlords during circumstances where they are prevented from using their property to earn an income. so in case of eventualities it reaslly helps you a lot
Posted: Mon May 03, 2010 12:05 pm Post Subject:
You severely restrict your options if you start forcing tenants to buy renters insurance. You could however include it as a clause in the agreement and include premium for renter insurance as a part of rent.
Posted: Mon May 24, 2010 07:49 pm Post Subject:
It can restrict your options to require a tenant to have renters insurance. But, you can ask. That way, if something the renter does causes damage to the home, life a grease fire, the tenants renters insurance would cover the damage under liability.
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