Rental Property Insurance Provided by Lake Region Insurance

Owning a rental property can be an incredible opportunity. Not only do you build equity, but you also gain valuable experience as you potentially grow your wealth. However, if you do not have rental property insurance, you could be making a very costly mistake.

At Lake Region Insurance Agency, we can handle all of your insurance needs, including rental property insurance. Call us today to find out how we can ensure you and your rental property have sufficient coverage. With three offices in Greater Minnesota, we are here to serve our community.

What Is Rental Property Insurance?

Typically, a rental or investment property is any property that you own and do not live in the majority of the time. Usually, rental property owners rent these spaces out to turn a profit, build equity, or both.

It could be a short-term rental, such as those available on vacation booking sites, or it may be a long-term rental. Either way, you need to protect it.

Rental property insurance is also sometimes called landlord insurance, as it covers the landlord or the party who owns the property. There are unique and definitive risks when you rent your property for any amount of time. Damage from careless tenants or a dog bite from an unauthorized pet can lead to skyrocketing costs.

Landlord insurance typically covers damage to the property, liability costs, and loss of rental income. It is similar to homeowners insurance but may have some provisions unique to a rental property.

Be sure to check with your insurance agent to see if you have the correct coverage in place. Our experienced Lake Region team can help you determine what type of policy is right for your situation.

What Does Rental Property Insurance Cover?

While there is no “one-size-fits-all” policy, landlord insurance will typically cover the actual building or dwelling, liability in the case of an injury to the tenant, and loss of income from your rental property.

Typically, landlord insurance covers:

Dwelling – The policy generally covers physical damage to the structure of the property only. It does not include the personal items of the tenant. They would need a renters insurance policy for that coverage. Be sure to clarify with your agent what the landlord insurance covers as far as types and causes of structural damage.

Landlord’s Personal Property – This can cover items that you leave on the property to maintain it. For example, a lawnmower, ladder, or leaf blower could fall under this level of coverage.

Liability – This part of the policy protects the property owner from legal or medical costs that stem from an injury that occurs on your property. It does not offer the tenant liability coverage.

Loss of Rental Income – If a covered event, such as a fire, makes the property uninhabitable, your policy may cover the loss of rental income.

Two types of optional insurance coverage that might be available for your rental property include:

Vandalism Coverage – This option covers intentional damage from a renter or other party.

Ordinance Coverage – Also called law coverage, this policy is for the cost of repairs required to meet local codes if an insured loss caused the damage.

Lake Region Insurance Agency Is on Your Side

No matter what type of rental property you have, the Lake Region agents can help you find the best policy possible. As independent agents, we are not stuck choosing from one company’s products. Instead, we can search for the right fit for what you need at the most competitive rate. Come by for a free review of your policy needs. We’re here to help.