Rental Property Insurance Question

[Catie Fihn]

What kind of insurance does everyone carry on their rentals?  We have a handful of rentals in our portfolio and I'm analyzing the coverage we already have.  We carry replacement cost on property and replacement cost on roof. Personal property coverage, liability...what else does everyone add to their policies?

[Mackaylee Beach]

It's great that you're already considering replacement cost coverage and liability. Many property owners also opt for loss of rental income coverage, which can be invaluable if a property becomes uninhabitable due to a covered peril, ensuring you maintain cash flow during repairs. Additionally, some landlords include ordinance or law coverage, which helps cover the increased costs associated with complying with new building codes when repairing or replacing damaged structures.

Umbrella insurance is another consideration, providing an extra layer of liability protection beyond the limits of standard policies. For properties in areas prone to natural disasters, flood or earthquake insurance might also be necessary. Lastly, you might want to consider landlord-specific insurance, which can cover tenant defaults and legal expenses related to disputes or evictions. It's always a good idea to regularly review and update your policies to ensure they align with your current needs and risk factors.