Whether you own just one Phoenix rental property or an entire portfolio of units and homes, your insurance is an important part of your investment strategy. If you’re not well-insured, you’re putting yourself at a huge financial risk.
Today, we’re sharing some sound insurance advice. Zen Rent manages single-family homes, condos and townhouses in and around the Phoenix area, including in Mesa, Scottsdale, Chandler, and Gilbert.
Landlord Insurance Policy Advice
Make sure you have the right policy for your rental home. If you’ve been living in a home as an owner/occupant for a few years, or you’re renting out the home that you grew up in and inherited from your parents, you might think that using your homeowner’s insurance is good enough. It’s not. You need to convert to a landlord policy so you’re covered when you transition into a rental. This is important for liability purposes, so talk to your insurance agent and make sure you have the right policy in place.
While you’re reviewing your insurance, make sure the coverage you have is adequate and covers every possible situation. For example, is loss of rent insurance included? You’ll want coverage for lost rent if your tenants need to move out and won’t be paying you rent for a while during any repairs or rebuilds. Make sure you have enough liability protection as well.
Landlords can Require Renter’s Insurance
At Zen Rent, we require all of our tenants to have liability insurance through a renter’s insurance policy. This is important for a number of reasons. First, it protects you against any damage that occurs because of your tenant’s abuse, misuse, or neglect. If a tenant accidentally leaves the oven on or leaves the house while the bathtub is running, your property is going to have a lot of damage. Rather than filing a claim with your insurance policy, the tenant’s renter’s insurance will cover it.
Renter’s insurance shouldn’t be a hard sell with good tenants. They’ll want to have that liability protection, and they’ll also have the peace of mind that their own property is protected. If there’s a major loss and some electronic equipment or furniture gets damaged, your landlord policy won’t cover it. Tenants need their own insurance. It’s inexpensive and well-worth it. Make sure they add you as an additional insured on their policy.
Closing the Insurance Gaps
Making sure you and your tenants have the right insurance is an excellent first step. But, there are always unexpected events and catastrophes that aren’t covered by traditional insurance. An eviction, for example, can be extremely expensive for rental property owners. Your insurance won’t cover that process.
We recommend you protect your asset with additional coverage that will save you money and provide a lot of back-up. For example, SureVestor has a number of plans and programs that offer extra protection to landlords and rental property owners.
Hopefully, you have an excellent insurance agent who can help you manage and maintain policies that make sense for your investment portfolio. If you have any questions about your Phoenix rental property and its insurance needs, please don’t hesitate to contact us at Zen Rent.