Virtually all homeowners hold some homeowners’ insurance policy to protect their property. But, is your homeowners’ insurance cover adequate when you rent or lease your property? Ideally, a standard homeowner insurance cover offers ideal property coverage, albeit limited, and it’s for this reason that the landlord may need a landlord policy. The tenant may need a renters insurance cover.
The homeowners’ insurance cover held by the landlord protects the building’s structure, adjacent and adjunct structures, and the landlord’s personal belongings within the insured piece of property. The coverage also offers personal liability protection to occupants of the home. But the coverage benefits don’t extend to temporary residents {renters/lessee} and their belongings.
The insurance coverage deficiencies in a homeowners’ insurance cover necessitate the acquisition of extra insurance covers that can offer more protection to the landlord’s property, the renters, and the belongings of the temporary residents.
These extra cover protections may come in the form of renters’ insurance and landlords’ insurance. Read on to learn why these two covers are vital.
Why Should a Landlord Get Landlord Insurance to Complement the Homeowners Insurance Cover?
Standard homeowners’ insurance coverage for rental property offers limited protection for the landlord’s property and occupants. It thus becomes necessary for a landlord to have some landlord insurance that can provide more protection. The cover may help when rental units get damaged and declared unlivable after a catastrophe. The cover may also help when someone gets injured while on the property.
The landlord insurance cover is crucial because it provides coverage for property damage, loss of income, and liability insurance. The cover protects against unintended tenant damage, but it doesn’t cover normal wear and tear and intentional damage.
Why Should Renters Get Renters Insurance?
The homeowners’ insurance acquired by the landlord doesn’t offer protection to the renter’s property or the renter. As such, a renter needs some renter’s insurance to cover for personal liability and property damage that may occur to the renter’s belongings on the property. Though this isn’t a state rule, it’s the only way tenants can secure their belongings.
Get an Updated Homeowners Insurance Policy Today
If you’re in Ruidoso, NM, you should visit Family Insurance Associates to get your updated homeowners’ insurance cover. At Family Insurance Associates, we provide updated home insurance policies to all Ruidoso, NM, residents. Check out our website to learn more.
