Rental Property Insurance

You have worked hard and have chosen to invest a portion of your earnings in rental property. The last thing you need is for your investment in the property to deplete your savings when something goes wrong. Storms, fire, lightning, vandalism, hail, storm damage, or other problems can make the rental property uninhabitable and lead to serious financial losses. The right rental property insurance could not be more important. In some areas, adding earthquake and flood insurance in addition to rental property insurance may be necessary to protect your investment.

Many people choose to invest in rental property as a way to get a higher return on their savings. Others may choose to rent out their property after moving to a new home or city or to list their home for short-term rentals on Airbnb due to frequent travel. People can make the mistake of believing that a standard homeowner policy will cover any damage, but many homeowner policies have restrictions that limit the amount of time a home can be rented. Some homeowners policies even have exclusions on any rentals if they see the rental property as a source of income. Do you understand the small print on your policy? Thankfully, at Deerfield Insurance Agency, Inc. in Deerfield, Illinois, we do, and we are here to help.

Each property owner has a unique situation that must be evaluated to put the right insurances in place. Every rental property owner should have their insurances customized to meet their specific needs and avoid risk. We can review your current policy for you and help you ensure that your financial health is protected. Call us to find out more about rental property insurance, or “landlord insurance.” Our local team of agents is easy to reach, and lives and works here in Deerfield. When you need an agent you can count on to be responsive and provide individual service, there is no better option than going local.

Because everyone’s needs are not the same, it is best to consult your agent to help assess your needs and find the insurance policy that is right for you.

Protect your building; Protect your investment

Whether you own one rental property or several, you’ve worked hard for that investment. Don’t be caught with a gap in coverage – typical homeowners policies don’t provide coverage for properties that are rented to others. Landlords must protect themselves against loss of income should the buildings become damaged and/or uninhabitable. This property insurance can also protect landlords if a tenant or guest is injured on the property.

Coverage that fits your needs – We can help

Buildings come in many shapes and sizes. Our insurance professionals will help you identify the right combination of coverage, value, and price for your rental property or properties. Landlord insurance policies cover property and liability coverage, in addition to special risks that landlords face, such as loss of rental revenue. Contact our insurance professionals today to get started customizing protection for your insurance needs.

What is Landlord insurance?

Property insurance for landlords provides financial protection against disasters. Rental properties may be owned by an individual, individual and their spouse, a living trust or an LLC.  Single-family homes, condominiums, rental units, townhouses, rowhouses and apartments are eligible for coverage. The policy offers dwelling, business personal property and liability coverage to you, the owner.

Property insurance for landlords is a package policy. This means that it covers both damage to your property and your liability or legal responsibility for any injuries and property damage you cause to other people.

Damage caused by most disasters is covered but there are exceptions. The most significant are damage caused by floods, earthquakes and poor maintenance. You must buy two separate policies for flood and earthquake coverage. Maintenance-related problems are the property owners’ responsibility.

Why do you need insurance as a landlord?
It is really all about protecting yourself financially if something unexpected happens to your property or possessions. That’s important because chances are your rental property is likely one of your largest investments.

• If the property was destroyed by fire or damaged by a natural disaster, you’d need money to repair or replace it.
• If a guest or tenant at your property is injured, liability protection and medical coverage may help pay expenses.
• If you are a victim of theft and vandalism, it can reimburse you for your loss or pay for repairs.
• If you are still paying for your rental property, your lender will require insurance.

It is important to know that property insurance is meant to cover unexpected damage, not routine maintenance. Ask your agent to talk about what is covered and be sure to read your policy so you know exactly what’s included and what is not.

Things to consider and questions to ask your agent
Here are few things to discuss with your agent that will influence your decisions.

• • How much will it cost to rebuild my rental property and replace my belongings if they are damaged or destroyed? (Ask your agent to talk you through your property’s features and the property you keep there so you can make an informed decision about coverage.)
  • Does the insurance company have a good reputation for customer service? Is it known for paying claims fairly and promptly?
  • What discounts are available? (Ask about multiple policy, security system and fire resistance discounts.)
  • What’s the process for filing and settling a claim? (Ask who to call and what happens after you file a claim.)