If you have a second home that you rent out or other rental properties other than your own residence, then you need to concern yourself with Vermont homeowners insurance. Sometimes called dwelling insurance, homeowners insurance for landlords is a bit different than that of insurance for your own home. You will have different needs and different concerns.
Take a few minutes to read through this article which gives you an overview of what you need to know about Vermont homeowners insurance for landlords.
What Needs to Be Covered?
As the landlord of a property, there are several concerns you are going to have when it comes to renting out your property. You, of course, do your best to rent to reliable people, but you never know what can happen. Therefore, you have to be prepared for the worst.
Your homeowners insurance policy will need to cover the following in order to give you adequate protection.
- Personal property used by tenants
- Liability protection
- Loss of income due inability to rent because of repairs
- Structure of building
- Other structures on the premises
Damages to these items will be covered if they occur because of accident and/or negligence of the tenants, but not for negligence on your part. If the damage is caused by fire or natural disaster, you should be covered, though flood damage will not be covered under a standard policy.
Renting out your property will increase the risk that is assumed by the insurance company. This means they will probably increase the requirements they place on you. For instance, many homeowners insurance companies will require landlords to do the following:
- Keep a repair log
- Keep a maintenance request log
- Lease for each person staying in the space
- Obtain security deposits from renters
- Perform background check on all renters
Each homeowners insurance company will be a little different, some may only require that you do some of the above and some may require all. Whether they are required or not, all of the above are good ideas and can reduce the hassle you may face in the future if there are damages or injuries.
If you do decide to go with a dwelling insurance plan, there is one major concern. Most dwelling plans do not provide liability protection. This is essential for someone renting property. It only takes one slip up, one fire, one anything, and someone on your property is hurt.
Liability coverage protects you against lawsuits from others’ misfortunes on your property. The policy will pay for repair of property and medical expenses for those injured up to the limits of the policy. If your dwelling policy does not include liability coverage, then see about adding a rider to the policy.
Shopping for the Best Policy
With expenses running high on just about everything, it would be great if you could save some money on your homeowners insurance. Luckily, you can do that very thing by shopping around. Shopping around is easy; simply gather at least 5 rate quotes online and compare the prices.
If you are unsure of just how much homeowners insurance you can afford, you can compare different policies with different coverage options and different limits. Once you have settled on a policy, you can then compare like policies from various Vermont homeowners insurance companies to find the best overall rate.