How to Manage Rental Property Insurance for Multi-family Properties

Owning a rental property with multiple units can cultivate lucrative financial opportunities while also providing essential housing within your community. However, entrusting your rentals to tenants and maintaining the building can foster inherent and significant economic risks. That’s why, as a responsible landlord, you must be well-versed on the topic of rental property insurance and how the right policy can establish robust and versatile fiscal security.

Why Is Rental Property Insurance Important?

Also known as landlord insurance, this type of policy should be considered essential for anyone who rents out property but may be especially critical for those with multi-unit properties. Given the greater number of people residing at the property and a likely higher number of guests who may be coming and going, landlords must be especially mindful of suitable coverage.

What Does My Landlord Insurance Cover?

As is the case with many types of policies, your rental property insurance can often be customized to suit your unique circumstances. Still, there are certain facets that you’ll likely want to include in your policy, such as the following:

• Structures coverage—This part of landlord insurance can assist with repair or restoration costs if the exterior of a rental property, common areas or plumbing and electrical systems are damaged by a covered peril, such as fires, vandalism and some natural disasters.

• Liability coverage—As a landlord, you bear significant liability risks. The potential financial ramifications of a mishap, such as if a tenant or guest is injured in a common area due to poor maintenance, can be offset by this part of your policy.

• Landlord possessions coverage—You may store certain items on the premises, such as furniture in common areas and maintenance equipment. This coverage can financially protect such items from covered incidents.

• Lost income coverage—If part or all of your multi-unit rental property is rendered uninhabitable due to a covered incident, your insurance may help you recoup the income you would have earned had the dwellings been able to be rented out as usual.

We’re Here to Help

Contact Stillman Insurance Group in Fairhope, Alabama, today to learn more about rental property insurance or to get a personalized quote.