Distinguishing Rental Property from Standard Home Insurance

Distinguishing Rental Property from Standard Home InsuranceWhile renting out your property can provide an additional steady income, it is not as easy as placing a “For Rent” sign outside. In addition to outfitting your home with Tennessee Rental Property Insurance, the followings tips are also recommended to ensure your property is adequately protected.

Insuring the Furnishings- While the property itself should be covered, it is not required to insure its contents. However, an exception to this rule applies to appliances that are permanently in the home such as the stove, refrigerator, dishwasher, or the washer and dryer, according to Insurance Quotes. As standard policies don’t always cover these items, it is recommended you include additional coverage to protect your appliances. A good gauge: total up the cost of replacement of these appliances all together, and ensure you have at least that amount of coverage.

Protect Rental Income- If a natural disaster occurs and causes the home to be uninhabitable, determine whether or not you can afford to be without income for as long as it takes for the repairs to be complete. If the income is detrimental, consider obtaining rental income protection.

Proper Insurance Coverage- Having adequate insurance coverage can help to give you the best value for your rental income. For example, taxes and maintenance are still your responsibility as the property owner, regardless of a tenant renting the home or not. Therefore, if you want to save money on monthly expenses, consider opting for a higher deductible. Further, consider bundling policies in order to receive better premium rates.

Replacement Cost & Cash Value Insurance- Full replacement cost will provide enough coverage to give you a new appliance should you need it whereas cash value will only provide enough money to repair the items to their pre-existing value. Depending on the condition of your appliances and how much each is worth, weigh the two options.

Injury Liability- In the unfortunate event that a guest is injured on your rental property, the tenant is ultimately liable. However, consult with your insurance professional to ensure you are released of liability for a variety of grey-area scenarios. Otherwise, inform the tenant of his or her inherent responsibility to provide safe environment for guests.

At Barnes Insurance Agency, we specialize in rental property insurance packages. Our programs include property and liability coverages in order to ensure your rental is protected while giving you peace of mind. To learn more, contact our experts today at (866) 733-5424.

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