There are three types of landlord insurance that you’ll need when you’re thinking about property management in Columbia, SC. These are renter’s insurance, dwelling insurance, and liability insurance. Many property owners assume whatever policy they have will cover everything. That’s not exactly true with rental property insurance, so today we’re explaining what these different insurance policies cover.
Property Management Columbia, SC: Renter’s Insurance
Renter’s insurance covers everything that a renter may have in a property. It doesn’t cover the dwelling, just the tenant’s personal property. A couple of months back, we had a tenant who had a grease fire in the house, and it was a total loss. She had let her renter’s insurance lapse a week before the fire happened, so she lost everything. Renter’s insurance is something we often think we don’t need, but it’s definitely an asset when something happens. In addition to your landlord policy, you should always encourage your tenants to have a renter’s insurance policy.
Property Management Columbia, SC: Dwelling Insurance
Dwelling insurance covers exactly what it says: the dwelling. Most banks will require that if you have a mortgage on your house, you have adequate dwelling insurance for the duration of your home loan. This insurance covers the total replacement of your property if your house decides to burn down or a catastrophic event occurs at the home. It’s critical that you keep this coverage in place.
Property Management Columbia, SC: Limited Liability Insurance
Liability insurance is perhaps the most important insurance for rental property. It is for tenants and the potential financial burden they can cause you. If a tenant damages your house, most policies have a $100,000 coverage level that will help you replace anything that may get damaged or happen to your home.
All three of these insurance types are quite significant. If you want to talk about what you need or whether you have enough insurance for your investment property, please contact us at Empire Property Management Group. We’d be happy to tell you more about insurance and the Columbia, SC property management services we provide.