Homeowners insurance pay for damage done tenants
Home insurance provides a degree of protection for your property. However, you usually need another type of insurance if you rent your house to tenants, because being a landlord takes a different set of risks. A landlord insurance usually pays for damage your tenants make on the property.
A homeowner’s insurance is not enough to cover a rental property. Your insurance company may require you to take insurance from a private owner. If you only have insurance and rent the property owner, the insurance company may refuse to cover losses. Insurers believe that rental properties are riskier because the owners tend to take better care of the insured property. Tenants can cause more damage than the insurer has to cover.
Landlord Insurance and damage
The law of landlord insurance, you can usually claim the insurance payment if your tenants damage the rental property and need to repair or replace the building structure. This covers both the structure housing the principal as independent structures, such as a fence or a shed for tools . Homeowners insurance also protects you against liability for injuries and property damage that occur on site. If any event uninhabitable leave your property (for example, if a natural disaster occurs), the insurance will also pay the rental income that you lose during the period.
Landlord Insurance Cost
Rent your property you become an investor. Due to the high risks involved, you may have to pay more for homeowners insurance. According to MSN Real Estate, the average homeowner insurance costs about 25 percent more than the typical housing policy. You must take into account this expense when calculating the pros and cons of renting your property.
Your homeowners insurance covers any unexpected expense you may have to pay for the rent of your tenants, including tenants damage incurred. However, you may have to provide proof that your tenants did cause the damage. This test may take the form of a signed and dated list detailing the conditions controlling the property at the time when tenants move into it. You can also attach photos to document.