Pennsylvania Landlord Insurance
Running a business renting properties can be very lucrative. However, it is also a lot of work. Plus, with great rewards, comes great risk. That is why it is extremely important to have adequate insurance coverage for your business. In fact, without the right kind of insurance protection in Pennsylvania, you could be setting yourself up for a major financial setback or disaster.
Before Fred and Janet bought their new house, they had a hard time selling their old one. In fact, they finally decided to refinance their house and rent it out, so they could have the funds to buy their new home. However, the couple made a common mistake that would soon result in disaster.
Fred already had the house insured with his Homeowners Insurance policy and he assumed that this was sufficient coverage. Janet asked him to check into insurance, but Fred kept putting it off and never got around to it. They had no problem renting the house to a nice couple and they were able to buy their new home. Everything was fine until a water pipe above the ceiling burst and caused an enormous amount of damage to the house they were renting out.
Fred contacted his insurance agent and to his horror, the policy only covered homes that were owner occupied. As a result of this oversight, repairs could not be made, and Fred and Janet had to take out bankruptcy. This story stresses the importance of getting the right kind of insurance for rental properties.
What Is Landlord Insurance?
A landlord policy protects anyone that owns a property and rents it to others for habitation. It provides protection against a wide range of damages that can occur to rental property, and it also protects the legal rights of the landlord.
Who Needs Rental Property Insurance?
You should take out a rental property policy if you plan to go into business, renting houses, apartments, condos, duplexes, or any structures. Also, people like Fred and Janet need this insurance. After all, it doesn't matter if you have one rental unit or a series of apartment complexes, you are a landlord and you need insurance protection. This also includes people that decide to rent out an upstairs or downstairs area within their homes. However, if you live in the same property you rent, you may only need to make an adjustment to your current homeowner policy.
What Does A Standard Landlord Policy Cover?
When you take out Habitational Insurance it covers damages from acts of nature and other problems that can occur. For example, should the roof become damaged by a falling tree or tree limb, your policy will pay for damages (minus deductible amounts). The policy should also cover acts of vandalism and fire.
As a property owner you are responsible if someone becomes injured on your premises. You need liability coverage to take care of issues like these. This will give you money for damages and legal assistance, should a renter sue you for injury.
What Landlord Insurance Options Should I Consider?
Depending on your situation, you may need several kinds of additional coverage. For instance:
- Flood Insurance - maybe your property is located in a flood plain. Perhaps it is right next to a lake or body of water. You will need flood protection, as most policies do not include flood coverage.
- Lost income coverage - what would you do if one of your properties was damaged and it took many months for repairs? Lost income coverage will provide the money you lost. This is very important for landlords that own many units in one building.
- Equipment breakdown insurance - washing machines, stoves, and refrigerators, can breakdown at any time. If you want coverage against these problems, it is available.
- Building code insurance - Keeping your buildings up to code can be expensive. With building code coverage you have assistance when the laws change and you need to make mandatory repairs or changes.
- Inflation adjustments - some policies automatically adjust your damage coverage to reflect inflation. This will insure that you are totally reimbursed for damages.
- Liability - standard liability amounts may not be sufficient for your business, and you can choose to have the limits raised.
Your insurance agent is the best person to talk to about Rental Property Insurance options.
The Value Of An Independent Insurance Agency
There is no way to predict what the future will bring and if a major problem is waiting for you around the corner. That is why it's vital to have the best possible Habitational Insurance policy for your rental business. For over thirty years, Joyce, Jackman & Bell Insurors have been there for business owners and everyday people in Pennsylvania. We are an independent agency so we are not tied down to any one insurance company.
You could check out a number of insurers and try to make all the necessary comparisons in policies and prices. However, this would take a very long time, and you might not know all the terms and issues surrounding Rental Property Insurance matters. It's much better to go with an experienced independent agency.
Joyce, Jackman & Bell Insurors has access to over forty five different insurance companies. This gives us the chance to check out all the possibilities and we can give you a policy that is customized to your business needs, and save you a lot of money in the process.
There are many good things about being a landlord but there are also a lot of risk factors to consider. Let us take care of the risk factors by providing you with valuable peace of mind that comes from knowing you are properly insured. Contact us for a free Habitational Insurance quote today via the free insurance savings form above, or call us at 866-421-RISK (7475)!