Since the Great Recession, there are hundreds of
thousands of rental homes across the state. Homeowners who rent out their
houses need to be sure their properties carry enough insurance coverage to
protect themselves and the people living in their homes.
Long-term rentals that are leased to someone for longer
than six months should carry a landlord or rental dwelling policy. These
policies typically cost more than normal homeowners insurance, but there can be
a variety of possible losses and damages to this home. Rental dwelling policies
will normally cover property insurance for the physical structure and also the
property that the owner leaves on site for regular maintenance.
If your rental home is aging, it’s smart to also include
landlord protective policies that cover equipment breakdowns such as water
heaters and air-conditioning units. Many rental owners have home warranties so
that major appliances are covered for repairs or replacement. However, this
coverage wouldn’t cover the wall and flooring damage done by a leaking water
heater, for example. Depending on the price and your tolerance for risk, you
can have a plan that covers the actual cash value or the replacement value, and
you can choose your deductible.