If you have a rental property, whether you are a single-dwelling landlord, hotel, or condominium owner, you will be faced with unique challenges and risks concerning renting to tenants. Insurance coverage through habitational insurance carriers isn’t just limited to hotels or condos, but those who own student dorms, boarding houses, or vacation rentals. A time-share property could also be included as a dwelling needing this coverage.
Overall Coverage Purpose
Habitational insurance is designed for use in commercial residential properties, as they have risks that are excluded from traditional coverage plans. However, adequate coverage is only obtained by including relevant exposures in the underwriting process. The experts at GA Mavon recommend that you consider the liabilities presented by the physical structure you rent, but also the tenants, their visitors, and the employees that live on or maintain the property. Your policy should cover:
Wind, Storm, or Fire Damage
Theft or Vandalism
Environmental Hazards or Cleanup
Loss of Income
Within each of these areas of risks that cannot be covered by a traditional general liability policy. The presence of third party risks are often excluded from commercial liability plans, and these gaps are costly to deal with if there is no insurance plan in place. Not only are the financial consequences of repairing or replacing property or equipment difficult, but managing the costs of a lawsuit can be equally devastating.