A Guide for Rental Property Insurance

Posted on 2 March, 2022

Have you ever wondered why your business needs rental property insurance? The short answer is that if your business owns and rents out one or more residential or commercial properties, having adequate Rental Property Insurance is essential to cover your bases and, in some cases, may even be required by law. Even if you don’t yet fully understand how rental property insurance works, simply understanding the reasons why you need this coverage and what a basic policy may look like can help you start your own insurance search. Here’s your business’s quick guide to securing the rental property coverage you need.

Rental Insurance Is Crucial If Your Business Operates as a Commercial or Residential Landlord

No matter what type of business you run, if the company owns and rents out one or more properties, you may likely want or need rental property insurance coverage. This applies to all types of business properties. For instance, you may want to look into getting a policy if your business rents out:

Commercial spaces, including office buildings, medical clinics, warehouses, and retail stores
Residential spaces, including condominium and apartment buildings, single family homes, vacation properties, and other properties generally rented to individuals or families
Any other properties that your business owns but does not currently occupy

A Thorough Rental Property Policy Should Include Several Pieces of Crucial Coverage

Once you’ve determined whether your business needs a rental property policy, the next step is to check your options carefully and ensure that they provide the coverage you want or need. In general, a thorough policy should include several key pieces, including:

General liability coverage
Physical structure coverage
Personal property coverage
Ordinance of law coverage
Equipment breakdown coverage
Protections for fair rental value in the event of the unexpected loss of rental income under certain conditions
Reimbursement in the event of loss of key services, such as air conditioning, heating, and other basic utilities

Your Policy Specifics May Depend on Your Current Rental Situation

The exact coverage of your policy may depend on the types of leases your business holds on its properties. Examples of different rental types include:

Occasional short-term renting
Long-term rentals of six or more months per lease
Regular short-term renting
Property sharing agreements

In addition, your policy premiums may vary depending on the specifics of your properties. Insurers may take into account:

The age, condition, and size of the rented properties
Additional features and amenities that come with the property
Safety mechanisms installed within the property
On-site security systems
Pet and smoking policies for the property

If your business owns one or more commercial or residential properties that you rent out on either a short-term or a long-term basis, chances are that you could benefit from securing an extensive Rental Property Insurance policy. Even if you haven’t yet started shopping for your policy, understanding the basics can give you a good sense of what to look for.

About Byrnes Agency

At Byrnes Agency, we offer insurance solutions that can be tailored to meet your specific needs. Whether you’re looking for personal policies or commercial coverage, we have the right coverage for you. To learn more about our products, contact us today at one of our two locations.

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Dayville Office

Phone: (860) 774-8549

394 Lake Rd

Dayville, CT 06241

United States

info@byrnesagency.com

Hours of Operation: Monday- Friday 9:00am-5:00pm

Norwich Office

Phone: (860) 886-5498

6 Consumers Avenue

Norwich, CT 06360