Buying an insurance policy is a great way to protect your investment property in Arcadia. However, there are various types of insurance plans available in the market, and you may find it difficult to identify the one that best serves your needs. The very first thing to understand is the difference between property insurance and renters’ insurance. In this article, we shall discuss both policies in great detail.
What is Property Insurance?
Property insurance is the coverage that landlords receive to safeguard their rentals from any unexpected damages, like broken roofs or windows due to storms, in return for a minimal insurance premium.
Property insurance keeps you financially prepared for any property-related losses. It can protect you when the tenants damage your rental or if they sue you for any reason. You can select the insurance plan that suits your requirements and the duration for which you want it to continue. Once the policy expires, you can either renew it or buy a new one.
Typical Costs and Coverage of Property Insurance
There is no fixed insurance amount that Arcadia landlords have to pay. The cost of property insurance premiums differs based on the location, state of the property, age, style, and construction, the value of your belongings, and your deductibles. Talk to a property management company in Arcadia to find out the exact premium amount for your property and identify the best plan that gives your sufficient coverage.
Ordinarily, property insurance secures your home from fire, lightning, smoke, windstorm, oil leakage, water leakage, explosion, hail, theft, vandalism, malicious mischief, burst pipes, falling trees, volcanic eruption, vehicle or aircraft impact, riots, civil commotion, and owner’s liability coverage. An extensive policy can give you the benefits of a temporary rent reimbursement if your house remains vacant due to reasons like pest infestations or mold.
What Isn’t Covered Under Property Insurance?
Property insurance may not cover the following damages to your Arcadia property.
- Wear and tear damages
- Repairs done by tenants or other non-professionals
- Regular maintenance
- The building or structural flaws
- Natural calamities or weather events
- Tenants’ belongings
If your house is located in an area that is prone to any of these issues, you should select insurance that covers these additional items or customize the policy before purchasing it.
What Is Renter’s Insurance?
Renter’s insurance protects the tenant’s personal property (belongings) and bodily injury, ordinarily in the event of damage or theft. As a landlord, you can also require your tenants to have such a renter’s insurance.
Costs And Coverage
On average, renter’s insurance in Arcadia costs approximately $180 per year. It protects tenants’ furniture, electronics, clothes, jewelry, and other luggage. It typically covers properties from damages caused by aircraft, vehicles, explosions, fires, lightning, smoke, riots, volcanic eruption, thefts, storms, hails, or the weight of sleet.
What Isn’t Covered Under Renters Insurance?
Renter’s insurance generally doesn’t cover losses due to natural calamities like earthquakes or floods. If the home is located in an area prone to hurricanes or wildfires, you should recommend your tenants add these to their insurance policy. It also doesn’t cover the loss of or damage to the tenant’s car or any other vehicle. Some other things that are generally left out are any items that are not listed, the guests’ belongings, and any house damages.
Understanding insurance coverage and ensuring that you choose a policy that suits your requirements is a must. This is where an experienced property management company, like ZenPro Property Management, can help. We have been serving the San Gabriel Valley, Los Angeles County, and Orange County properties for over 18 years. Our team can guide you and your tenants towards choosing the best insurance policies that will protect your Arcadia home.
For more information, contact us at ZenPro Property Management.