What You Should Know Before Renting Your Property
Owning a property and renting it out, especially in high-travel areas like Maryland and Delaware, can be a great investment opportunity. However, it’s important to make sure that you have the right insurance coverage to stay protected.
The Staples & Associates team is well-versed in rental property and landlord insurance. We’ve also provided a list of things you should know before renting your property.
Homeowners Insurance vs Landlord’s Insurance Coverage
Homeowners insurance is required for all homeowners and provides personal property coverage for your belongings. Liability coverage is also part of the policy but only covers you and other members of your family who live in the home—not renters. Homeowners insurance is able to be purchased when the owner still lives in the home.
Landlord insurance is necessary if you own, but are not living in the property while renting it out. Letting others rent your property always comes with risk, but having the right insurance will bring you peace of mind. Make sure to have liability, dwelling coverage, and personal property coverage for utilities or loss of rent in the event that you are not able to have tenants live there from a covered loss.
If your renters want to protect their belongings, they will need to provide their own renter’s insurance. It’s a good idea to think about adding renters insurance as a condition of your lease so your guests have extra protection.