Thinking of renting out your duplex? Read on to learn of the right insurance cover that’s sure to protect you and your duplex investment.
As an investor thinking of renting out a duplex, taking up a cover policy is very important. With an insurance policy, you will be able to protect your investment from several circumstances. These include tenants damaging your property or even tenants who don’t pay rent.
When taking up insurance cover, however, it is important you pick one that best suits your needs. To help you make the right decision, this post shares with you insurance cover tips. These tips will help you fully protect your investment.
In particular, this post looks at two key main insurance cover policies. It is crucial that you familiarise yourself with as well as consider these cover policies. The two are insurance cover for;
- Short-Term Duplex Rentals
- Long-Term Duplex Rentals
Short-Term Duplex Rentals
If you are an investor looking to rent out your investment on a short-term basis (a few days, a week or several weekends) you’ll need more than a standard home insurance cover. Why? Well, your unit will constitute a business to insurance companies. Standard home insurance covers do not provide coverage for business activities carried out in a home.
To be properly covered as an investor renting out your duplex short term, you’ll need a business policy cover. In particular, you’ll need a bed and breakfast or hotel policy cover. This’ll give you total coverage for your short-term duplex rentals. The good thing is that a number of insurance firms in the country offer such a policy.
Long-Term Duplex Rentals
Investors looking to rent out their properties long term need a different policy than that of short-term duplexes. Long-term here refers to investors renting out their unit for six months to over a year. If you are going for long-term rentals, you’ll need a landlord or rental dwelling insurance policy. This will give your investment extra protection that includes coverage for physical damage. The damages can be from snow, fire, electricity or any other acts of nature.
Furthermore, this policy offers protection to personal property a tenant uses while in your duplex. This includes personal properties like appliances as well as home furniture. Some landlord or rental dwelling insurance policies also offer coverage for rental income loss. This loss can be due to repairs or a tenant failing to pay rent.
In some cases, especially when dealing with different insurance firms, you’ll need to inquire about their policy. Some firms offer a standard policy that won’t offer your investment the full protection it needs. Therefore, it is important that you speak with an insurance firm to ensure you get the right cover
Why You Should Consider Liability & Renters Insurance
As an investor, liability insurance is something you should consider. With liability insurance, you’ll be able to take care of medical and legal fees if a tenant gets hurt on your property. This helps you avoid taking or making unwanted costs.
Another insurance cover you’ll need to consider and know of is renters insurance. Renters insurance covers personal possession of your tenant. In the event they are damaged, they’ll be protected.
For landlords, it is advised you require your tenants to buy renters insurance before signing a lease. This helps landlords avoid disputes with renters regarding damaged personal possessions.