Research and Understand Warranty and Insurance Limitations on Rental Properties

Research and Understand Warranty and Insurance Limitations on Rental Properties

Earlier this year, our local area experienced an earthquake, a hurricane, and severe flooding all within a few week time period.  The earthquake created cracks in basements that were not noticeable until the heavy rains resulted in floods a few weeks later.  Several of our landlords called their insurance providers to initiate claims and were surprised by some of the limitations that their homeowner’s policy had since their home had been converted to a rental property.  Each insurance company is different, so be sure to review your policy with your insurance provider so that you fully understand the coverage differences that apply to rental properties.  Be sure you have the correct type of policy in place and explore optional coverages to ensure that you and your tenant are protected in case of fire, flood, mold, or any other severe damage that could occur to the home. 


Warranties may also have exclusions for rental properties.  For instance, many carpet or flooring warranties only apply to owner-occupied properties.  Be sure to review the fine print on your warranties to be aware of any exclusions.

back