Buy Dwelling Insurance

Dwelling rental insurance is a type of insurance coverage specifically designed for landlords or property owners who rent out their properties. It provides financial protection against various risks such as damage to the rental property, loss of rent due to tenant default, or liability lawsuits resulting from accidents or injuries occurring on the rental property. This insurance helps to safeguard the landlord's investment, covering the cost of repairs or replacements and covering lost income due to tenant default.

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small municipalities ranges from $57 to $79 per month based on location, square footage, age, claims history and more.

Dwelling insurance is a form of insurance coverage that is specifically designed for landlords. It covers personal liability in the event that a third-party sustains an injury on your rental property. It also physical damages your rental property that occur as a result of acts of nature - fires, floods, sewer backups, etc. - as well as acts of vandalism and theft.

Dwelling insurance can also replace lost income that would have otherwise been collected by tenants in the event that your rental property is uninhabitable for any reason - a pest infestation or a mold outbreak, for example - until your apartment, duplex, a house, a fourplex, or other types of rental properties until it is repaired or rebuilt and is habitable again.

Dwelling insurance is vital for landlords. It protects you from serious financial losses that would otherwise be crippling in the event that you had to pay for damages, medical costs, or legal defense fees out of your own pocket.

In the event that an unplanned for event that you are liable for does occur on your rental property, your insurer will help to pay for the related costs for anything that a dwelling insurance policy covers.

Dwelling insurance policies can be customized to meet the needs of landlords. In order to ensure that this policy offers the protections that you need, speaking with an experienced agent who specializes in commercial property insurance is encouraged.

Together, you and your broker can determine exactly what types of coverage your dwelling insurance policy should offer. Examples of some of the protections that a policy should offer include:

• Commercial Property - Coverage for damage to a rental property is one of the primary features that a dwelling insurance policy for landlords will offer. This portion of your policy will cover the cost of any damages that occur as a result of acts of nature or other unforeseen circumstances, such as fires, pipe bursts, sewage backups, mold outbreaks, pest infestations, vandalism, or robberies. For instance, if a sewage backup were to occur at your rental property, your dwelling insurance policy would help to pay for any related repairs.
• General Liability - Another important element of a robust dwelling insurance policy is liability protections for any third-party property damage or personal injuries that may occur on your rental property. For example, if a friend of a tenant were to slip and fall while visiting your property, suffer an injury, and file a lawsuit against you, this part of a dwelling insurance policy will help to pay for any related expenses, including legal defense fees, medical expense, and any settlements that you may be required to pay out.
• Loss Of Rental Income - In the event that you were unable to collect rental income, a dwelling insurance policy will help to cover your losses. For instance, if your apartment complex or duplex were to become contaminated with mold and uninhabitable, your insurance would reimburse you for the lost income until the mold were removed, damages were repaired, and your property could be inhabited again.

These are just a few examples of the type of dwelling insurance coverage that landlords should consider for their rental properties.

The dwelling policy is offered to most dwellings housing up to four families, even if the owner is not an occupant of any of the units in the dwelling. Additionally, dwelling policies may also be issued to mobile or trailer homes, subject to certain conditions.

There are three forms in which the dwelling policy is written, as will be outlined below. All the coverage in the forms, however, are structured as follows:

• A - Dwellings
• B - Other structures
• C - Personal property
• D - Fair rental value
• E - Additional living expense (Not available on DP 00 01)

The three forms differ in the perils they cover and they are similar to the coverage provided under the three causes of loss forms available in the commercial property program.

DP 00 01 - Dwelling Property 1 - Basic Form

The basic form covers fire, lightning and internal explosion. By endorsement, the policy can be extended to protect against the perils of windstorm and hail, riot or civil commotion, aircraft, volcanic eruption, and smoke. All of these perils are added as a package, which also serves to broaden coverage for explosion.

Under another option, the policy may be broadened to cover vandalism and malicious mischief, but this is more restricted form of vandalism and malicious mischief than is found on the homeowners forms.

In the dwelling policy, this coverage does not insure against damage to glass (other than glass building blocks) constituting part of the building and there is no coverage of theft, burglary, or larceny except for any building damage caused by burglars.

DP 00 02 - Dwelling Property 2 - Broad Form

ADDITIONAL PERILS

Of the seven perils that the broad form adds to the basic form, the five perils listed below are the same as their counterparts in the homeowners policies:

• Accidental discharge of water or steam
• Freezing
• Sudden and accidental damage from artificially generated electric currents
• Sudden and accidental tearing apart, cracking, burning, or bulging
• Weight of ice, snow, or sleet

The following perils are not the same as or provided in the homeowners policies and require additional explanation:

Damage by Burglars: The broad form also covers damage by burglars to covered property, not only damage to a building that is covered under vandalism or malicious mischief.

Note: Unless specifically endorsed, the policy does not cover property taken by the burglars. Also, there is no coverage on the described location after 30 days of vacancy.

Water Damage: The policy does not cover loss due to the accidental overflow of water or steam occurring off the premises-even though it damages property on the premises.

DP 00 03 - Dwelling Property 3 - Special Form

The special form covers property that qualifies under Coverage A and Coverage B on an open-peril basis, subject only to the stated exclusions. The special form dwelling policy is similar to the Homeowners 3.

HIGHLIGHTED PERILS

Theft: As was mentioned previously, coverage on personal property against loss by theft is covered for buildings and structures only. Under the dwelling form, coverage for personal property calls for a special endorsement of the dwelling form. In addition, the dwelling form excludes theft or attempted theft to buildings that have been vacant more than 30 (consecutive) days.

Water Damage: The broad form, discussed directly above, specifically excludes water damage to property on the insured premises, if the overflow originates off the premises. The special form broadens the water damage exclusion to cover damage to insured property; even under these circumstances, but only if the damage is to the building.

Damage to Antennas, Aerials: The dwelling form excludes damage to antennas and aerials by wind, hail, ice, snow or sleet, perils that are covered for such damage under the homeowners special form. The dwelling policy also excludes damage from these perils to trees, shrubs, and plants.

Theft Endorsements

Theft coverage may be added by endorsement to any of the dwelling policy forms (basic, broad or special). This coverage is available under a limited or broad basis. On-premises and off-premises coverages are available, but there are specific rules governing the availability of off-premises coverage.

To be eligible for the broad theft endorsement, the residence must be owner-occupied. Similarly, if a residence apartment is to be insured, it must be occupied by a tenant-insured. Off-premises coverage is available only if on-premises is purchased, and the amount of off-premises coverage may not exceed the on-premises coverage.

Both the limited and broad form theft endorsements cover theft, attempted theft, and vandalism, and malicious mischief damage resulting from theft. Under either form, coverage applies to property located at a bank, public warehouse, or at any occupied dwelling that is not owned or occupied by, or rented to an insured if the property is there for safekeeping.

There are many reasons why Dwelling Properties may be sued, including:

Personal injury claims: If someone is injured while on the property, they may file a lawsuit against the property owner. For example, if a guest slips and falls on a wet floor, they may file a claim against the homeowner.

Property damage claims: If someone's property is damaged while on the dwelling property, they may file a lawsuit against the property owner. For example, if a tree falls on a neighbor's car while it is parked on the property, the neighbor may file a claim against the homeowner.

Breach of contract claims: If there is a contract between the homeowner and another party, and the homeowner fails to fulfill their obligations under the contract, the other party may file a lawsuit against the homeowner. For example, if the homeowner hires a contractor to do renovations on the property, and the contractor does not complete the work as agreed upon, the contractor may file a claim against the homeowner.

Nuisance claims: If the property owner creates a nuisance that affects a neighbor's enjoyment of their property, the neighbor may file a lawsuit against the property owner. For example, if the homeowner installs bright lights that shine directly into the neighbor's bedroom window, the neighbor may file a claim against the homeowner.

Insurance can help protect the property owner in these situations. Depending on the type of insurance coverage, the policy may cover legal fees, court costs, and any damages awarded to the plaintiff in a lawsuit.

For example, if someone is injured on the property, the property owner's liability insurance may cover the cost of defending against the lawsuit, as well as any damages awarded to the injured party. If a neighbor files a lawsuit claiming that the property owner's actions are creating a nuisance, the property owner's liability insurance may cover the cost of defending against the lawsuit, as well as any damages awarded to the neighbor.

It's important to note that insurance policies vary widely, so it's important to review your policy and talk to your insurance agent to fully understand the coverage and limitations of your policy.