The insurance that covers your Philadelphia rental property must protect your investment property, keep you safe from liability claims, and if possible, provide lost rental income for any incident or loss that results from a covered claim. Your tenants should carry their own insurance, which covers their personal possessions, including furniture and electronics.
You want to have your property fully covered, so pay attention to these important factors when it comes to insuring your rental investments.
Landlord Insurance and Dwelling Coverage
When you own and occupy a home, you buy homeowner’s insurance to protect the property and your financial investment. A landlord insurance policy is similar. It covers you for any physical damage that occurs. If something happens that requires the repair or the replacement of the walls, roof, or structure of your home, the insurance will pay for it.
Make sure you understand the perils that are covered and those that are not. The main difference between the landlord policy and the homeowner’s insurance policy is that the possessions inside the home are not covered because they do not belong to you.
Optional coverage might be available if you have personal property in the rental home. Be sure to discuss this with your agent or insurance company.
Liability Insurance for your Philadelphia Rental Home
Liability coverage is an important part of any insurance policy so you’re protected from lawsuits and claims that may arise if a tenant or a tenant’s guest is injured or harmed while at your property. If you have more than one rental property and you need extra coverage beyond the liability protection that your landlord policy provides, consider an umbrella policy. This is a good way to extend coverage for only a few extra dollars per month.
Include Loss of Rent Coverage
No one wants to think about a fire or a flood or an incident in which your rental property may become inhabitable. But, catastrophes do happen, and you want to be both prepared and covered. Your loss of rent coverage will pay your rent when your tenant has to be relocated because of a covered peril. Most loss of rent policies have a defined period, perhaps up to 12 months. Not every policy will include this as a standard coverage, so make sure you have it included. It’s worth a higher premium.
Require Renter’s Insurance from Tenants
Renter’s insurance is not expensive, and usually your tenants won’t have to spend more than $15 per month to obtain it. They might find it’s even lower when they combine it with their automobile insurance. Include the requirement for renters insurance in your lease agreement. Make sure your tenants include you as an additional insured on the policy, and ask for proof that it’s been purchased and renewed when the term is over.
This is an important way for tenants to cover their personal belongings in the event of a loss at their home. It also protects them and you from liability issues. If they leave a pan on a stove and it starts a fire, their renter’s policy will cover it.
We aren’t insurance agents, but we work closely with many insurance professionals in the management of Philadelphia rental properties. If you’d like a referral or you have any questions, please don’t hesitate to contact us at TCS Management.
TCS Management is a full service property management company headquartered in Philadelphia, Pennsylvania, also serving Cherry Hill, NJ, Wilmington, Delaware and the surrounding areas. We focus on single-family and multifamily residential property management of homes, condos, townhomes, and apartment buildings.
