Are You An Accidental Landlord?

Attention, homeowners turned landlords: Have you recently decided to rent your home instead of selling it in the current market? If so, you are now a landlord, and when you become a landlord your property becomes a place of business. There is a policy specifically for landlords. 

A growing number of homeowners are becoming landlords by default rather than design. Many who are relocating for a job or other reasons are having trouble selling their homes. Others who are relocating would prefer to wait until the market values increase before selling. And many people who own second homes are choosing to rent them to generate additional income. In any event, you may find yourself becoming an “accidental landlord.”
Keep in mind that when it’s rented, your property changes character — it becomes a place of business. It is no longer your primary or secondary residence, and there is a different type of insurance policy for your status as a landlord. A landlord insurance policy normally covers the property — both the building and the landlord’s personal property.


Many choices
Landlord policies typically cover the building in case it’s damaged or destroyed by:

• Fire
• Explosion
• Lightning
• Windstorm*
• Hail damage*

There are other important coverages that are typically part of a landlord package policy but which can be added to a property only landlord policy for an additional premium:

• Coverage for vandalism
• Loss of rents
• Landlord Personal Liability Coverage

Depending on your individual situation, you may consider some options especially important. For example, do you rely on rental income to pay your living expenses? If so, a landlord policy may include coverage to help compensate for lost rent if the building is uninhabitable because of covered damage such as fire or explosion. Personal liability coverage often can be added to a landlord policy that covers property only. You may want liability coverage in case you are sued because someone is hurt on or in the rental property.


Call me
I can give you additional information and answer any questions you may have so that you have the coverage you want when you rent out your property.


Marianne Hobbs Insurance Agency 602.547.1970 OR http://www.farmersagent.com/mhobbs

*Coverage may not be available in all areas and can vary among states.