Landlords in West Bloomfield, MI can’t use a standard homeowner’s insurance policy. Most of these policies specifically exclude tenants or rental problems. Your company will deny your claim if they find out you’re renting out the home. There are certain policies designed for landlords.
Dwelling Coverage
Usually, these policies are called something like fire dwelling coverage or a landlord’s policy. The name varies depending on the company, so it’s important to explain your situation to an agent here at Phil Klein Insurance Group to make sure you get the right policy to meet your needs.
What Does Landlord Insurance Cover?
This type of home insurance typically covers physical structures, such as the home, and detached structures, like a garage or shed. Many policies provide liability coverage in case a tenant sues you. They may cover lost income if you can’t rent out the property due to a covered peril.
For example, if you can’t rent out the home because of fire damage, the policy may reimburse you for lost rental income until you can rent out the property again. This varies per policy and company, making it important to ask a representative if your policy covers lost rental income before you purchase it.
What Is Not Covered?
Policies do not cover tenants’ belongings. A tenant must obtain a renter’s insurance policy to make sure they have coverage for their belongings. It also won’t cover general wear and tear. For example, if the roof is leaking because it’s old, your policy won’t cover that.
Most policies have a list of covered perils. This commonly includes lightning, wind damage, fires, and other natural disasters. Policies exclude certain disasters, which may include tornadoes and floods.
Always ask an agent at Phil Klein Insurance Group about policy exclusions and purchasing additional coverage to ensure you have the necessary coverage. Our experienced agents will take the time to review the fine print on your policy with you, so there won’t be any surprises when disaster strikes. Contact us today. We’re currently serving the West Bloomfield, MI area.
