Reasons why Loss of Rents coverage can be beneficial to you.
Today I want to talk about insurance coverage. Many owners come right out and say, what kind of insurance should I get in my house as I rent it out to a tenant?
A lot of the coverages are pretty standard. You can talk to your insurance carrier about what they recommend—whether it’s just getting some liability, getting some property damage coverage, or getting storm damage. But the most important one is called Loss of Rents coverage—and it’s not very expensive. It’s not something we talk about all the time, but we recommend it to our homeowners.
If the building or home gets extensive damage, like a hurricane or fire, or a loss where there’s not going to be a tenant in your unit, how will you collect the rent? How are you going to pay the mortgage? Because the mortgage will continue.
Loss of Rents coverage is not very expensive. It’s probably $30 to $50 extra per year, and it will pay you the face value of whatever the lease is that we write. So your rent will still be coming in when your house is knocked down by a hurricane.
This is something you can talk about with your insurer, but we also have a lot of experience with Loss of Rents coverage. You can ask us, or you can ask one of the carriers that we use as well.
With that, you can check us out on our website or call us in the office at (808)-445-9223. We’d be happy to help.