If you have ever been a landlord, you know that having the proper insurance in place to protect your property is crucial to protecting your asset. Whether you are renting out a single-family home or multiple properties within a condominium, you always take risks when renting out your space to another person.

In this article, we’ll go over the basics of habitational insurance as well as what does habitational insurance covers and how habitational property insurance can be beneficial to any landlord. Habitational insurance is a critical tool landlords can use to protect themselves and their tenants against accidents and damage to valuable assets. 

The Basics of Habitational Insurance 

You should first understand what habitational insurance is before we go into the specifics, like who it covers or how much it costs. Habitational Insurance is a type of liability insurance that covers landlords from claims that could occur due to injuries to tenants or damage to their rental property because of theft, fire, storms, or vandalism. Habitational insurance can sometimes cover earthquake or flood coverage, depending on where the rental property is located.

If you rent a property to anyone, habitational insurance is vital and can financially protect you from many different adverse scenarios. Replacing or repairing stolen or damaged possession can be costly, and habitational insurance can help you cover these costs. 

What Does Habitational Insurance Cover? 

Most habitational insurance covers the following areas:

  • Environmental damage – Storms and fires can obviously cause severe damage to your rental property. The cost of replacing or repairing the property can be expensive, but the cleanup of any environmental damage can also be very costly and time-consuming. If your rental property is located in a place that is prone to flooding or earthquakes, habitational insurance is an important policy to consider to protect your investment.
  • General liability claims – If a visitor or a tenant is injured on your property (for example, slipping and falling on your property’s steps), habitational insurance can help cover any medical bills or legal fees.
  • Vandalism and theft – If your property falls victim to theft or vandalism, habitational insurance can provide coverage to fix any damages or repair your property.

While it’s essential to understand what habitational insurance covers, you should also be aware of what habitational insurance does not cover. In general, this type of insurance policy will not cover:

  • Vehicles – Personal vehicles that experience any sort of accident or damage would not be covered by habitational insurance. A personal property policy is needed to cover a personal vehicle.
  • Equipment – If the air conditioning or ventilation system of your rental unit breaks down, this may not be covered by your habitational insurance policy. A separate personal property policy may cover these types of items.
  • Signs – If your rental property has any kind of signage and this is damaged, habitational insurance will likely not cover the cost of repairing this.

Get in Touch

If you are a landlord and are interested in habitational property insurance for your investment, it’s best to speak to experienced insurance service providers to create the policy that provides the right amount of coverage for your rental unit(s). At Dunham Insurance, no matter what type of insurance coverage you need, we take the extra time to ensure that you completely understand your coverage and that it fits your needs perfectly. Our agency’s driving mission is to reduce your overall insurance costs by providing the very best business, home, auto/marine, commercial and personal umbrella policies. Contact us today to discuss your specific insurance needs or get a rate quote!