Dwelling insurance policies are designed to protect properties that are rented out to tenants. This type of coverage offers many advantages for landlords. Muller Insurance is an independent insurance agency that has been in business for more than 118 years, offering insurance policies across New York, New Jersey, Connecticut, Pennsylvania, and other states. Here, we discuss the benefits of having a dwelling insurance policy as a rental property owner.
What Is Dwelling Insurance?
Dwelling insurance is a huge part of a homeowner’s or landlord’s insurance policy. For landlords, the policy covers the physical structure of your rental property, including the walls, roof, and attached structures, such as garages and decks. It also provides liability coverage for landlords if someone is injured at their rental property. These policies cover the costs of the repair or reconstruction of rental properties if they are damaged by:
- Fire
- Theft and vandalism
- Wind and hail
- Explosions
There are two main types of dwelling insurance policies, including:
- Owner-occupied dwelling insurance: This is appropriate if the owner occupies one of the units.
- Tenant-occupied dwelling insurance: This is intended for owners who do not occupy the building.
What Does Dwelling Insurance Not Cover?
Although dwelling insurance offers many protections for landlords and their properties, the coverage does not cover everything. It often requires purchasing separate policies for:
- Natural disasters: Landlords often must purchase additional protection for events like earthquakes, floods, sinkholes, and mudslides.
- Water damage: Dwelling insurance excludes protection from water damage, which is often caused by floods or leaks from swimming pools.
- Wear and tear: These policies often exclude protection from normal wear and tear, deterioration, and marring of the property over time.
- Tenant’s personal property or liability: Dwelling insurance doesn’t cover the tenants’ personal property or liability. They must purchase their own policy to get covered.
To ensure they are fully protected, landlords often opt to bundle other policies with their dwelling insurance.
Benefits of Having Dwelling Insurance for Landlords
Landlords face various challenges, including issues with tenants, property maintenance problems, liability concerns, regulatory compliance matters, and more. To be protected against these common challenges, landlords need adequate coverage. Dwelling insurance offers comprehensive protection against the various risks of owning a rental property, so landlords purchase it to safeguard their properties and ensure a steady income stream.
Dwelling policies provide several benefits for rental property owners, including:
Property Damage Protection
Dwelling coverage protects against physical damage to the rental owner’s property if it’s caused by covered events, such as fire, windstorms, or hail. This gives the owner assurance that they won’t be left paying for repairs out of their own pocket. It also helps create a safe living environment for tenants, ensuring the property remains habitable, as well as maintain the building’s market value.
Liability Coverage
Dwelling insurance policies safeguard landlords from financial losses because of legal claims if someone is injured on their property. They also offer protection associated with legal defense fees, medical bills, and settlements if an injury or accidents occurs on the property and they are found liable.
Tenant Negligence Protection
Dwelling insurance guards against damages incurred by tenant negligence or malicious actions. This means that the landlord is not solely responsible for repair costs resulting from poor tenant behavior. This ensures that rental property owners won’t have to bear significant financial losses from unforeseen events that are caused by tenants. Tenants also need their own insurance to ensure their personal property is protected.
For landlords, having the right insurance coverage is paramount for protecting their rental property and tenants. Being underinsured can have major consequences, including major out-of-pocket expenses for repairs or reconstruction, financial losses, and more.
Why Choose Muller Insurance for Dwelling Insurance Coverage?
If you’re looking for reliable dwelling coverage to protect yourself against liability issues and unforeseen damages, turn to Muller Insurance. We are an independent agent working with more than twenty leading insurance companies, including the following that offer dwelling insurance:
- Travelers Insurance
- The Andover Companies Insurance
- Franklin Mutual Insurance
- Safeco Insurance
- Farmers of Salem Insurance
- Cumberland Mutual Insurance
As an independent agency, we have the flexibility to offer policies that work for you and your budget. There are also bundling opportunities available for flexibility and pricing. We aim to work with landlords to ensure their needs are met. Muller Insurance has a solid reputation built over decades, and is licensed in over twenty states, including New York, New Jersey, and Connecticut. To learn more about how dwelling insurance for rental property owners can benefit you, contact us today or request a free quote.
