Having someone else live in your investment property comes with its own challenges. When you live in your own home, you are careful and considerate regarding the maintenance of the house. However, tenants may not have the same emotional bond with their rented homes and may treat the house with negligence.
In addition, there are several other situations that are not always in the landlord’s control, such as the occurrence of natural hazards.
Considering these risks, many landlords opt for insurance for their rental investments. However, it is crucial to select a plan that covers your Columbus investment property in every way possible. Here are a few policies to consider.
Landlord Insurance Coverage
It must be a priority for a homeowner to select a policy that covers accidental damage to your tenants and their guests. As the landlord, it is your responsibility to provide your renter with a place that is safe and habitable. However, if the tenant accidentally suffers any injuries on your property, they may file a lawsuit and you will face legal consequences.
Landlord’s insurance protects you financially from any loss due to accidents, injuries, or lawsuits. It is very cost-effective and should be taken by every rental property owner in Columbus.
Tenant Liability Insurance Coverage
Tenant liability covers you for any accidental damage caused by the renter’s activities on your property. This policy coverage includes damage due to fire, smoke, explosion, or water, after deducting the benefits from the renter’s insurance policy and the security deposit amount.
Renters Insurance
Although you are getting your investment property insured as a landlord, it makes sense to have your tenant get renter’s insurance too. Many a time, renters barely meet their monthly expenses, especially in big cities like Columbus, where nearly half of the population stays in rented homes. If a mishap occurs, renter's insurance will cover the damage up to the premium.
Some landlords make this mandatory for any tenant that occupies their property. If the occupant fails to renew this policy, they may even be evicted under breach of contract.
Storm water/Flood/Sewer backup coverage
This may sound very specific, but it is worth getting a policy that covers any damage caused due to storms, flooding, or sewer backups. During heavy rains in Columbus, there are chances of storm drains overflowing and water backing up in your basement. Be it flood water or sewage, the idea of having your basement full of contamination is ghastly. Covering this in your insurance ensures that you won’t be paying for the damage caused.
At your end, you can carry out periodic maintenance to check any clogged pipes to avoid this situation.
Note that, many policies are designed in a way that if you claim even a small amount, the overall amount your insurance covers reduces or, your premium for the next year increases. You need to read the policy thoroughly before finalizing it to avoid any misunderstandings.
Getting insurance coverage for your Columbus property is a smart move. If you have trouble deciding which policy you should opt for, talk to a real estate manager to get your doubts cleared. Contact us at Solutions for Real Estate for any questions you may have.
