Do you use your Neptune, New Jersey area property as an investment for rental income? If so, then you may or may not already know that a regular homeowner’s insurance policy is not the way to protect your investments. While you may be able to use your homeowner’s insurance to cover a short-term rental, if your property is used primarily for investment income, then you need to look beyond standard homeowner’s insurance. Instead, you need to look at specialized rental property insurance to cover your needs.
What type of specialized insurance do you need? The default answer used to be rental property insurance. However, as more and more people are using websites to connect them with short-term renters, your property may or may not qualify as a rental property. Instead, if your primary use of your property will be to rent it out to guests on a short-term basis, you may need to be covered by a business insurance policy that treats the property like a hotel or a bed and breakfast.
On the other hand, if you intend to use the property to lease it to long-term tenants, then you may need rental property insurance. Even though rental property insurance policies only cover the structure and the landlord’s contents, but not the tenant’s possessions, they tend to be more expensive than regular homeowner’s policies. This is because rental property insurance also includes liability coverage for any injuries received on the property, as well as legal fees to defend against injury claims. These policies also tend to cover lost rental income if you are unable to rent out the property while it is being repaired or rebuilt after a covered loss. To have their contents covered, renters need to obtain their own renter’s insurance policies.
To find out more about Rental Property Insurance, contact DIRUS Inc. today.
