Choosing the Proper Coverage for Your Home
Maybe you never intended to be a landlord…
That happens frequently these days.
There are many who never intend to be landlords, but circumstances force them into renting out their property in some form or another.
You might purchase a vacation home, only to realize you will need to accept short-term rentals to cover the higher-than-anticipated costs.
Or, you may buy a new house, while struggling to sell your old one. Thus, you rent it out for the time being.
If that is the case, you need to revisit your homeowners insurance, pronto. Most likely, your existing policy won’t cut it anymore.
A quick policy review with the insurance specialists at your local independent agency should provide you answers to two important questions:
- Do I require landlord insurance? If you are planning to take in renters just a few weeks per year, your homeowners policy probably provides coverage. However, when rentals are more than just occasional, your current policy is likely inadequate.
- What are my options — in terms of both cost and coverage? Insurance policies for rental properties and units have different labels depending on the company, but they are typically referred to as dwelling policies, and fall into three categories: DP-1, DP-2, and DP-3. These policies differ in scope of coverage, and your independent agent will be able to advise you on which fits your specific needs. While there is no question you will pay more for a landlord policy than a standard homeowners policy, it is marginal — typically no more than $100 to $200 more per year.
Contact our insurance specialists at 845-986-1177 to learn more. We are your business, home, auto, and life insurance solutions provider, partner, and adviser, serving Warwick, Greenwood Lake, Florida, Goshen, Pine Island, Middletown, Chester, Monroe, Newburgh, Orange County, and the Hudson Valley and Tri-State Area.