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Rental Property Insurance

Rental property insurance, otherwise known as landlord insurance, protects property owners against certain risks taken when they rent out their properties to tenants. This common type of insurance safeguards against loss of rental income and costly damage to a property caused by accidents or natural disasters. Landlords can gain peace of mind knowing their properties are covered with Insure Beacon!

Rental Property Insurance Coverage

For landlords, there are many risks and liabilities associated with renting out your property. Make sure to speak with the highly experienced insurance brokers at Insure Beacon to acquire the right amount of coverage needed to protect your investment. Our policies are designed to offer a sense of security to landlords and ease for the properties.

Check out the various areas of coverage a rental property insurance policy provides:

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Dwelling Coverage

Dwelling coverage covers direct or accidental physical loss to your rental dwelling and any personal property located therein. Your insurance policy may help pay for the repair or rebuilding of the physical structure if it becomes damaged by a covered hazard.

Landlords Personal Property Coverage

Keeping the building neat and clean is a duty most landlords take on. As a landlord, you may leave personal property used to service the rental on-site, such as lawnmowers or snow blowers. If this equipment is stolen or damaged, it may be covered under your personal property policy.

Liability Coverage

If a person were to be injured on your property, you could be liable to pay medical expenses. Liability coverage as part of landlord insurance may help you pay for another person’s legal expenses or medical bills in the event that the person is injured on your rental property and you are found responsible.

Loss of Rent Coverage

In the event of an incident, landlords can worry less when they have proper insurance coverage. Loss of Rent coverage will reimburse a landlord for lost rent if the income loss is caused by a covered claim. This may occur if your rental property becomes uninhabitable due to a fire, storm, or other covered incident.

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Rental Property Insurance Policies

Rental Property Insurance policies come in three tiers that specify the ‘perils’ (specific risks or causes of loss covered by your policy) that are covered by each specific policy. These three tiers include the following:

Dwelling DP-1 Insurance Policy

A dwelling DP-1 Insurance policy is what is known as a ‘named perils insurance policy’, meaning all that perils that are insured by your policy are specifically named in the policy itself. Common perils that are insured against with DP1 insurance include:

  • Fire & Lightning

  • Internal Explosion & External Explosion

  • Windstorm & Hail

  • Riot & Civil Commotion

  • Smoke

  • Aircraft

  • Vehicles

  • Volcanic Explosion

  • Vandalism & Malicious Mischief

Keep in mind that most DP-1 policies are Actual Cash Value (ACV) policies that compute coverage by subtracting depreciation from the replacement cost. This means that, like car insurance, the older the dwelling gets, the less it is worth.

Dwelling DP-2 Insurance Policy

The DP2 insurance policy is also named risk, although its list of perils is much more extensive than a DP-1 Insurance Policy. Again, if damage occurs that is not plainly included in the policy, it will not receive coverage.

Dwelling DP-3 Insurance Policy

Dwelling DP-3 Insurance is known as an open peril policy, meaning that it covers all potential perils except those specifically included in the policy. DP-3 rental property insurance is the most comprehensive choice and is best suited for non-owner-occupied homes and rental properties because it covers the most broad range of perils, including:

  • Ordinance or Law

  • Earth Movement

  • Water Damage

  • Power Failure

  • Neglect

  • War

  • Nuclear Hazard

  • Intentional Loss

  • Governmental Action

  • Mold

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Insure Beacon, LLC

1 Riverchase Office Plaza, Suite 200

Hoover, AL 35244

(205) 730-6728 MAIN
(205) 623-3748 FAX

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Insure Beacon has over 25 years combined experience in the independent insurance industry. We proudly serve our clients in the states of Alabama, Georgia, Mississippi, & Tennessee.

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