Investor · Wake Forest, NC · Member since 2014 · 15 posts · 3 votes
Hi BP community-
Does anyone know if there is an insurance company that offers coverage to pay for repairs to rental properties? Repairs for rental house issues such as plumbing or appliance repairs? Regardless if the repair is needed from normal wear and tear or caused by the tenant?
In general, insurance provides coverage for many, sudden, unforeseen and unplanned events. Wear and tear is excluded because it is inevitable. Insurance is designed to protect only against unforeseen losses.
To prepare for predictable losses such as wear and tear, one can self-insure by setting aside money each month.
@Kelly S. There are home warranty policies that cover some of those items: electrical, plumbing, appliances, etc. Generally not tenant damage to an appliance for example, but you can withhold that expense from their security deposit. As Juliana mentioned, you can set aside money each month or use a warranty, depending on your preferences.
I generally set aside money each month for most of my properties, but use a warranty at one property because it's further away from the others and I don't have good contacts in that area. They have a variety of plans and deductibles so do some research. I've used American Home Shield for the past few years and generally satisfied with their services.