Anyone who owns a rental property needs to consider having rental property insurance. But with all the insurance agencies out there, how do you find one you can trust? Muller Insurance has been around for more than 100 years, based in Hoboken, New Jersey, and serving clients in New Jersey, New York, Connecticut, Maryland, and many other states. Here, we discuss the importance of rental property insurance.What Is Rental Property Insurance?Rental property insurance is also known as landlord insurance. It is an insurance policy that covers the risks associated with renting out a property to others. These types of policies can also be referred to as tenant-occupied dwelling insurance policies. A standard rental property insurance policy from Muller Insurance offers three major pillars of coverage.Property InsuranceIf there is damage from snow, wind, hail, fire, vandalism, or another related circumstance, property insurance will cover the cost of repairs. This helps ensure the property’s structure and common areas are in good condition for the tenants who occupy the dwelling.General LiabilityLiability insurance coverage is in place in case a visitor is injured on the property or if their belongings are damaged while in a common area. General liability insurance will cover the cost of any lawsuits the visitor might bring upon the property owner.While a rental property insurance policy offers those main points of coverage, there are always additional coverage options that can be added.What Is Not Covered by Rental Property Insurance?Not everything is covered by a rental property insurance policy. Muller Insurance ensures landlords know the following items are not covered by these policies.Tenant’s Personal PropertyA tenant’s personal property is not covered by a rental property insurance policy. Tenants will need to get their own renters’ insurance policy to cover their personal belongings.Maintenance of Equipment FailureEquipment like water heaters may break down due to wear and tear. That type of equipment is not covered by a landlord insurance policy. Any repairs or replacements needed will have to be paid out of pocket.Flood or Earthquake DamageFloods and earthquakes are not covered by standard rental property insurance policies. If you live in an area that is prone to these natural disasters, you may want to investigate additional insurance policies.Shared PropertyRental property insurance policies are intended for properties that are not occupied by the owner. That means home sharing, like renting out a bedroom or floor in your home, is not covered by rental property insurance.Unsure of what coverage you need as a landlord? Reach out to the team at Muller Insurance and one of our agents can explain the different types of policies available to you.Types of Rental Property Insurance PoliciesThere are three types of rental insurance policies, also known as dwelling policies (DP). Each offers unique coverage options.DP-1 PolicyA DP-1 policy is limited in its coverage. It is based only on specific risks named in the policy, which can include damage from the following:AircraftFireHailInternal and external explosionLightningRiots and civil commotionSmokeVandalismVehiclesVolcanic explosionsWindstormsA DP-1 is based on the actual cash value of the components of the dwelling.DP-2 PolicyA DP-2 policy provides an average amount of protection and covers more risks than a DP-1 policy. A DP-2 policy covers everything a DP-1 policy does, as well as:Accidental discharge of waterBurglary damageCollapse of part or all of the dwellingElectrical damageFalling objectsFreezing pipesGlass breakageWeight of ice and snowAny tear, cracking, burning, or bulging of the buildingA DP-2 policy usually covers the entire cost of replacement, meaning the policy would pay to replace the damaged element without regard for depreciation.DP-3 PolicyA DP-3 policy will cover everything a DP-1 and DP-2 policy covers. The exclusions are those items not covered by the rental property insurance policy. These include: MoldNeglectNuclear hazardOrdinance or lawPower failureWarWater damageDP-3 insurance policies might cover personal property but will cover far less than a standard homeowner’s insurance policy. This is because most of the personal property is the tenants. In most cases, personal property coverage will be limited to the appliances in the dwelling.Choose An Independent Insurance Agent for Your CoverageMuller Insurance is an independent insurance agency, meaning we don’t deal with just one insurance company. We partner with over 20 insurance companies. Being an independent agent allows us to shop around and find the best policies for our clients.If you are looking for the best rental property insurance, some of the companies we work with include:AmtrustCumberland Insurance GroupFarmers of SalemFidelity NationalFitchburgForemostFranklin MutualNarragansett BayPhiladelphia ContributionshipStillwaterLocated in Hoboken, New Jersey, Muller Insurance serves clients in more than 25 states, including New Jersey, New York, Rhode Island, Massachusetts, and more. If you are looking for a rental property insurance policy, contact us today and request a quote.