Rental properties are significant investments that provide income for many years. Through the ins and outs of life however, man made or spontaneous acts of nature, pose as potential hazards that can damage the property itself or the integrity of the rental income. If opting to use a property management company, they will be much more informed about directing you to the kind of insurance needed for your rental property.
The type of insurance needed for rental property is called landlord insurance which covers most financial losses incurred in case of an accident. The building is covered at the most basic coverage however, some policies allow for an expansion for insured items. These include fire, earthquake, flooding, explosion, storm, lightning, subsidence, malicious damage as well as theft. Keep in mind however that each insurance company and respective tailored policies may differ.
Landlord insurance is typically 15%-20% more than a typical homeowners insurance policy. Insurance is of course associated with risk, which is why this type of insurance is usually more costly. If a property management company is in the picture, often times they will have a prescribed insurer ready to refer that specializes in rental property insurance, sometimes even with discount. Phoenix requires rental properties to be registered with the Maricopa County Assessor, given that only some management companies require renters insurance, it is most certainly a highly recommended insurance.
The type of insurance needed for rental property is called landlord insurance which covers most financial losses incurred in case of an accident. The building is covered at the most basic coverage however, some policies allow for an expansion for insured items. These include fire, earthquake, flooding, explosion, storm, lightning, subsidence, malicious damage as well as theft. Keep in mind however that each insurance company and respective tailored policies may differ.
Landlord insurance is typically 15%-20% more than a typical homeowners insurance policy. Insurance is of course associated with risk, which is why this type of insurance is usually more costly. If a property management company is in the picture, often times they will have a prescribed insurer ready to refer that specializes in rental property insurance, sometimes even with discount. Phoenix requires rental properties to be registered with the Maricopa County Assessor, given that only some management companies require renters insurance, it is most certainly a highly recommended insurance.
Wow, I didn't even know that there was a seperate type of insurance for rental properties. My husband and I have a rental in Tempe and one in San Tan Valley and just have standard homeowner's insurance. We do have a property manager for the STV house beccause it's pretty far out of our way, but Tempe we just had someone do tenant placement and have taken over. With Tempe we have to pay a speical tax for renting our property out. I'm sure that they imposed this tax because of the high rental market from ASU students. Anyway, thanks for the post!
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