Orlando, Fla.—Sometimes life throws you lemons, and you have to learn how make a refreshing lemonade out of it. Take this scenario, for example. You just bought a nice house for your you and your family. You carefully selected its features to meet the criteria of what you consider your dream home, like the perfect amount of bedrooms and baths, a kitchen that is or could become a perfect place to entertain your guests, and is located in a very nice neighborhood.
Two months, after you close your mortgage, you learn your company needs to send you to cover an important project across the country which is an excellent opportunity because it will come with a considerable increase of salary and benefits.
WHAT DO YOU DO NOW?
Well, this is one of those good moments when you will need to start fixing an amazing lemonade for your and your family. You may not be able to sell your new house yet, because you just closed your mortgage. It may be too early to have earned equity yet, and you could end up losing money. There are many reasons why you may not be ready to sell yet, and it is always a good idea to hire a good Realtor® to help you understand your options. But this is not the end of the world, you can always rent your property to recover enough funds to cover your current mortgage and keep your finances healthy enough to be able to purchase a second property and relocate.
This situation, unexpectedly, just turned you into a landlord, and your home insurance options could also be different since landlord insurance and homeowners insurance do not cover your tenants' personal belongings.
WHAT IS THE DIFFERENCE BETWEEN HOMEOWNERS AND LANDLORD INSURANCE?
Well, as a start, in order to get homeowners insurance coverage, you must live in the insured premises.
Landlord insurance typically helps cover the building itself, and other structures on the property, such as sheds or fences from damage caused by fire, lighting, wind, hail or another covered loss.
FOLLOWING ARE THE KEY DIFFERENCES
On Personal Property
Homeowners insurance may help cover many kinds of belongings, such as furniture, clothing and computers,
Landlord insurance typically only provides coverage for items used to service the rented property.
Homeowners insurance typically covers you and relatives who live with you in the home, whether the accident happens in your home or not.
Landlord insurance typically provides liability coverage relating to the rented premises. If a tenant has an accident in the house that you are renting, and you are legally responsible, the liability coverage on your landlord policy may help pay for the resulting medical expenses or legal fees.
In the other hand, if your tenant accidentally damages the property, your landlord insurance will typically include dwelling coverage, which helps protect against sudden and accidental damage to your rental property. It means that if your property is damaged by a covered peril such as fire, lighting or hail, your landlord insurance may to help cover the repair cost.
While a landlord insurance policy may help provide protection against a number unexpected losses, not every situation will be covered. For instance, maintenance-related issues and equipment breakdowns are typically excluded from landlord insurance coverage. Also, landlord insurance typically will not cover intentional damage, such as vandalism.
Before you approve that lease or rental agreement, you may want to require renters insurance as a condition. A renters insurance may help them protect their possessions, and also provide some liability protection.
For questions regarding landlord insurance or quotes, contact us at (321) 206-8035.