Do you need Rental Property Insurance?
Why do you need rental property insurance?
Can you afford to rebuild your rental property or lose your rental income? If not, you should buy Rental Property Insurance. Rental Property Insurance is known as a Form DP-3 or Landlords Protection Policy. Rental homes are not covered by Homeowners Insurance policies; in the event of a claim, your carrier most probably will point to the ‘occupancy clause’ stating that a Homeowners Insurance Policy is defined as Coverage protection for an Owner Occupied Dwelling as the Primary Residence.
Rental Property Insurance is essential in the followoing cases:
- Moving due to a change of employment and haven’t sold your home.
- Moving to a new home and planning to rent the house.
- Landlord wishing to protect your property.
- Investor building a real estate portfolio inclusive of rental homes.
- Landlord or Investor interested in Liability Insurance.
Single Family homes up to 4 Units can be placed under a Landlord Protection Policy or Form DP-3; for rental properties that consist of 5 units or more, a Commercial Lines Residential/Habitational policy must be purchased.