Salient Points About Rental Insurance in Canfield And Columbiana, OH

Posted by Brad Beltempo on May 14th, 2023

Many individuals rent out their second or vacation homes regularly. This provides them with an additional source of income and ensures the upkeep of a property that would experience wear & tear otherwise. Unfortunately, many homeowners are convinced that their existing home insurance is good enough to cover the rental home too. Well, this cannot be further from the truth. The concerned individual would find it effective to purchase rental insurance in Canfield and Columbiana, OH, in addition to the traditional homeowner’s insurance coverage.

Sure, one would have to check all related facts before going ahead and buying the required insurance coverage. It is essential to be informed about the following points that underline the efficacy of being covered by landlord insurance (another term for rental insurance). Some of the interesting facts that make buying rental insurance even more important include the following:-

A typical homeowner’s insurance does not cover a dwelling that the property owner does not occupy. Keeping it secure is important, though. This makes rental insurance essential.

Landlord insurance provides significant coverage that includes property damage, lost income, and liability protection.

One may opt for additional riders that enhance the coverage. The landlord can thus be suitably covered for lost income when a tenant fails to pay flood damage and ensure the building code after damage to the property.

What is included in rental insurance coverage?

· Property Damage- This covers any damage suffered by the rented property in the aftermath of a natural disaster. It includes damage by fire, theft, electrical accident, gas leaks, earthquake, theft, and/or vandalism. Damage caused by irresponsible tenants is also covered by insurance. Opting for replacement costs against the claim is a good idea instead of the actual cash value. This is more effective when the property is an old one with most of its furnishings and fixtures quite old as well.

· Lost Income/Rental Default – A second home or a vacation property that has remained vacant for a long time may be rendered uninhabitable due to various problems. This can happen when mold infestation or a sinkhole suddenly opens up, or the installations become severely damaged to reside inside the home. Whatever the reason, the insurance carrier will offer temporary relief by reimbursing the rental amount.

· Liability- Should a tenant or visitor make liability claims against the landlord for physical injury and/or property damage, the insurance company will compensate the third party when liability is proved. The insurance carrier will also provide legal costs to the insured person when a lawsuit is filed claiming liability.

It is often difficult to understand the legal terms included in the insurance documents. However, it helps to be aware that most rental insurance offers a variety of insurance plans to their clients. It is essential to read the fine print carefully and make an informed decision by signing the documents related to rental insurance in Canfield and Columbiana, OH.