Protect Yourself and Your Property – Insurance Information for Brentwood, CA Homeowners

One of the things you’ll need to consider when you become a landlord is home insurance in Brentwood, CA. This will be different from your own homeowner’s insurance policy, and it’s meant to protect your property and your finances. If you don’t have a reliable insurance agent who can give you good advice, find one. Or, talk to a property manager who can help you plan for your insurance needs.

Tenants and Renter’s Insurance

Tenants have the opportunity to buy an inexpensive renter’s insurance policy. You should require this in your lease agreement. The renter’s insurance will cover their personal possessions and any damage that is caused by their own liability. This provides you and your tenants with protection.

Landlord Insurance Policy

At a minimum, your landlord policy should include coverage for the physical building and liability protection. Your policy will not include any coverage for the tenant’s possessions, which is why it’s so important that they obtain their own coverage. You want a policy that includes all risks. This will prevent surprises when you try to file a claim and find out that you aren’t covered for something critical.

Lost Rent Coverage

Some of the insurance policies out there will automatically include a lost rent provision in your insurance policy, but double-check to make sure you have it. If something happens to your property and your tenants need to move out, that will impact your rental income. You might discover mold, and you’ll have to re-locate your tenants while it’s cleaned. If this happens, you lose rent. This coverage will protect you and provide for the lost rent until your tenants can move back in.

Liability Amounts

It’s critical to have enough liability coverage. Upgrade from the general $300,000 liability limits to the $1,000,000 policy. It won’t cost you that much more, and it’s worth it to have the extra protection. Make sure your coverage includes any damage that your tenants cause. You might benefit from an umbrella policy, which can include liability. Talk to your agent about this option.

Your insurance is worth reviewing on an annual basis. Check in with your insurance agent regularly, and make sure you are completely covered for any possible catastrophe that can occur at your rental property. If you have any questions about finding an insurance agent or the coverage you need as a landlord, contact Select 1 Realty.

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