What Type Of Insurance Policy Do I Need For A Rental Property?

Rental property’s can provide great residual incomes, and right now with the rental market in demand, a lot of people are putting their house’s up for rent or buying investment properties. Before you do this, your insurance policy must be written correctly, or else you could have some major gaps in coverage.

First of all lest highlight some of the most common types of properties.

  • Apartment Building
  • Condo
  • Dwelling

Apartment Building Insurance

This policy is designed for a building that houses multiple units, usually more than 3.  The policy includes building coverage, a general liability, business personal property coverage, loss of use, crime coverage and more.  This policy is strictly designed for apartments.

We usually write these policies through Travelers, Philadelphia or Middle Oak.

Landlord Condo Insurance

This policy is built for someone who owns a condominium and rents it out. It includes interior dwelling coverage, loss of rent, medical payments, and landlord liability. You can add things such as extended liability coverage, and loss assessment. This policy is usually written under Dwelling Fire Policy Form 8.

Landlord Dwelling Insurance

Investment houses are either written under a DP-1 or a DP-3. Or known as a dwelling fire policy. Most policies are written under a dp-3, because it gives you replacement cost coverage on the dwelling, which is better than the dp-1 actual cash value coverage on a dwelling. Always make sure you have the following coverages on your dwelling rental property.

  • replacement cost on dwelling(dp-3)
  • extended dwelling coverage, at least 120 percent
  • landlord business property(stove top, dishwasher, fridge, washer dryer, etc)
  • other structure coverage
  • loss of use, for at least 12 months
  • landlord liability
  • sewer back up
  • Ordinance & Code Coverage

If you have any questions or want a quote contact us.

Advertisements

About Mark A. Schneider
Owner of Denvers Insurance and Close Contact Security Services.

One Response to What Type Of Insurance Policy Do I Need For A Rental Property?

  1. Pingback: As A Landlord, Should I Require Tenant’s To Carry Renter’s Insurance? « Denvers Insurance Agency Blog

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: