Renting out your home can provide a steady income stream, but ensuring you have the right insurance coverage is important. If you’re considering becoming a landlord in Missouri, Iowa, or Illinois, you must make some essential home insurance policy changes to protect your investment. We can help guide you through the process by partnering with Southern Iowa Insurance Services.
Here’s how your home insurance policy may need to be updated when renting out your property:
Increased Liability Coverage:
When you become a landlord, you assume a new level of responsibility. If a tenant or a visitor is injured on your property, you could be liable for any damages. You may want to increase your liability insurance coverage to protect yourself from lawsuits.
Add Landlord Property Coverage:
With landlord property insurance, you’ll have protection for your rental property’s structure, such as the roof, walls, and foundation. If a disaster such as a fire or a storm damages the rental property, you can get repairs and avoid paying for them out of pocket. You may also consider adding a contents coverage policy to cover furnishings, appliances, and other rented items.
Loss of Rental Income Coverage:
One of the main benefits of renting out your property is earning rental income. However, if a tenant stops paying rent due to damage to the property or other reasons, you could be left with a significant financial loss. Loss of rental income coverage can help compensate you for lost earnings if your property is uninhabitable due to damage.
We Can Help!
Whether in Missouri, Iowa, or Illinois, renting out your home can be a smart financial decision. Contact Southern Iowa Insurance Services today to update your home insurance policy.