If you’re considering investing in a college rental property, either as a source of income now or as a future home for your child, making sure it’s well-protected should be at the top of your list. There are unique challenges and opportunities for landlords in college towns.
Our Morgantown, WV, location has decades of experience overcoming those obstacles. We’re happy to guide you through the ins and outs of landlord insurance and safeguarding your investment.
Why Landlord Insurance is Essential
Owning a rental property in a college town can be a wise investment, but it also comes with risks. Protecting your rental investment requires a thorough understanding of the insurance landscape, from potential property damage to liability issues.
A standard homeowners insurance policy typically won’t offer the coverage you need for a rental property. That’s where landlord insurance comes into play. Landlord insurance is designed to protect non-owner-occupied properties, covering a range of risks from property damage to liability claims.
Understanding Landlord Insurance Coverage
A comprehensive landlord insurance policy typically includes the following types of coverage:
- Property Damage
Basic landlord insurance often includes property damage, which covers physical damage to the rental property caused by unexpected disasters such as fire, lightning, wind, and hail.
- Liability Coverage
Liability coverage helps protect you if a tenant or visitor is injured on your property. Given the high turnover and social activity typical of college rentals, we strongly recommend having liability coverage.
- Loss of Rental Income
If your property becomes uninhabitable due to a covered loss, fair rental income coverage helps replace lost rental income. Loss of rental income insurance ensures you will avoid financial hardship if tenants need to move out unexpectedly due to unforeseen disasters.
- Premises Medical Protection
This coverage helps pay for medical expenses if someone is injured in an accident on your rental property, providing an additional layer of protection against liability claims.
Here are some specific types of optional coverages you might want to consider adding to your policy:
- Vandalism Coverage: College rentals are more susceptible to vandalism, whether or not the tenant is at fault. Vandalism coverage can help you repair any damages that may result.
- Rental Property Under Construction: If you’re renovating or constructing a new property, additional insurance can protect the incomplete structure from various risks until it’s ready for
- Vacancy: Going any amount of time without a tenant requires some special considerations when it comes to insurance When no one is living in your rental, you are susceptible to some unique risks, and it’s important to make sure you have the right coverage in place.
Addressing Common Landlord Insurance Exclusions
Understanding what landlord insurance does not cover is as important as understanding what it does. Here are a few standard exclusions you should be aware of:
- Maintenance and Equipment Breakdowns
If a major appliance or system (like the furnace or dishwasher) breaks down, you’ll generally have to cover repairs or replacement out of pocket. Regular maintenance and additional home warranty plans might mitigate this risk.
- Property You Share
If you live on the property and rent out a portion, you might not qualify for a landlord policy. Speak with one of our insurance advisors to explore coverage options that fit your situation.
- Tenant Belongings
Landlord insurance typically does not cover tenants’ personal belongings. Encouraging or requiring tenants to have renters insurance will ensure their personal items are protected against damage or theft. In addition, the tenant’s insurance policy will cover their liability, so if they do something wrong, their insurance could pay first, shielding you from a claim.
Investing in a college rental property presents an exciting opportunity but also comes with inherent risks that need careful management. You can mitigate these risks with the appropriate landlord insurance, ensuring your property is well-protected.
Davis Insurance Advisors is here to guide you every step of the way, offering the expertise, empathy, and comprehensive coverage options you need to secure your investment. Your peace of mind is our priority.