If you’re a property owner, you’re responsible for ensuring that your rental is safe, clean, and livable for tenants. Rental property insurance helps owners cover financial losses and potential risks that come with renting out a property.
In general, renters aren’t responsible for application malfunctions, fires, injuries that occur on the property, or other things that could go wrong.
Keep scrolling to learn more about rental insurance coverage, including its importance and cost.
Keep in mind that coverages for rental insurance vary greatly depending on the type of policy you choose. However, all policies typically offer coverage for personal belongings, dwelling, loss of income, and liability coverage.
Here are some key attributes of rental insurance coverage:
In general, it’s 25 percent more expensive compared to a homeowners insurance policy. The average homeowners insurance costs around $1,445 annually, which means $120 per month. Meanwhile, rental property insurance may charge you $1,806 annually or $150 per month.
Note that these numbers are the average. You may have more add-ons or liability coverage depending on the specific situation with your property. For example, you could add coverage for theft, vandalism, new construction, renovation, and more. Buying a separate umbrella policy is also an option if your net worth is more than your property’s liability coverage.
Also, there’s several types of policies you can choose from which can affect how much you pay for your rental property insurance. These are:
Your rental property insurance protects you from a variety of perils and uncertain situations. Thus, make sure you understand its features and costs before you choose one to purchase.