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Are you a landlord? Do you have the right insurance?

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A regular homeowners policy isn't going to give you the same coverage you need for rental properties.

  • Loss of rents–while your property is being repaired or rebuilt after a covered loss, your policy will pay for your loss of rents.
  • Liability–landlord liability is different from your own personal liability. If a covered loss or injury occurs at the property, you'll want legal fees and medical expenses covered. 
  • Personal property–this coverage is typically high on a homeowners policy. On a rental property, you only need to cover the amount of furniture you're providing. Your tenants should purchase a separate renters insurance policy to cover their personal belongings.

Whether you own one rental home or have multiple investment properties, we can get set up with a landlord protection policy (also known as dwelling fire insurance) so that you can rent out your property in confidence.

Do I need landlord protection insurance?

If you rent out your house for more than four weeks per year, then most likely yes. But even if it’s just a few days per year, you should check what your best option is. We have insurance advisors available to help.

 

What type of landlord protection insurance should I get?

In general, these policies can be separated into three categories: Basic Form (DP-1), Broad Form (DP-2), and Special Form (DP-3).

  • Basic form (DP1)–a named peril form, meaning it only insures perils specifically listed on the policy such as fire, lightning and vandalism on an Actual Cash Value (not taking into account depreciation of value over time) basis. It typically does not cover the contents, which can be a problem if you’re renting out a furnished home. This is a good fit for homes that may need a little more love.
  • Broad form (DP2)–is also a named peril policy that insures on an ACV basis, but includes broader coverages including windstorm, hail and sometimes loss of rents (on top of fire, lightning and vandalism).
  • Special form (DP3)–a special form policy, meaning all perils are covered unless specifically excluded (i.e. vacancy!). Plus, the house is insured on a Replacement Cost basis, just like what we offer on a standard homeowners policy. This is the most common policy today.

Think of your property as a business, and the dwelling policy as a necessary investment to keep your business running smoothly.