Insurance on your Tampa rental property is critical, but you have to make sure you have the right insurance, otherwise your claims won’t be covered, and you’ll find yourself out-of-pocket for more than you’d like to pay.
The right insurance will protect you from property loss as well as liability. If your tenant or their guests are injured on your property, you’ll want a policy that covers it. Today, we’re explaining why a homeowner’s insurance policy is not what you need.
Homeowner’s Policy versus Landlord Policy
When you buy a property and live in it, you need to insure that home with a homeowner’s insurance policy. These policies cover the owners and the occupants. Your property and your possessions are covered, and there’s also liability coverage.
But, Tampa investors who buy properties that will be rented out need a landlord policy instead. This is different from a homeowner’s policy because it protects more than just the physical structure of your home. It also provides extra liability insurance. You should consider a policy that includes loss of rent coverage. If something catastrophic happens to your property and your tenants need to move out, you won’t lose that rental income while the home is being prepared.
Tampa Tenants: Requiring Renter’s Insurance
Many Tampa landlords require their tenants to purchase a renter’s insurance policy. This type of a policy doesn’t protect you as a landlord, but it is a valuable way for tenants to insure their own belongings. It’s not very expensive, and it protects their personal property. Your landlord policy will not cover any of their belongings, so they might want to get their own coverage.
Evaluate Your Insurance Coverage Annually
It’s important to talk to your insurance agent and make sure you have the right coverage for your investment property. If you’re in a flood zone, you might need additional coverage outside of your regular landlord policy.
Tampa investors put a lot of money into their rental properties, and it’s essential to ensure they’re protected. If you have any questions about insurance requirements or anything pertaining to Tampa property management, please don’t hesitate to contact us at Rent It Network.