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Insuring your Rental Home with California Home Insurance

All homeowners know how important it is to have California home insurance coverage in place. Accidents can happen to those living in the home as well as visitors to the home and having the right coverage in place can save a great deal of out of pocket expenses. It is equally as important to have the proper coverage for your rental property where others will be living. In your own home you have some degree of control for what goes on and what takes place, but in a rental property someone else is in control. Although you may not be directly liable for what takes place in your rental property you could be drawn into a claim simply because you own the property.

Whether it is you home or a rental property, accidents can happen and that is when California home insurance would sure come in handy. Now you donít have to insure the contents of the home beyond the furnace or hot water heater unless you provide a furnished home but you should have ample physical damage and liability insurance in place. If an accident occurs beyond the normal use of the rental property and it is out of your control having the proper coverage in place can save you a lot of money. When it comes to having a policy in place for a rental property it is better to have prepared for many contingencies rather then only a few.

Rental Homes

It is important not to make the same mistake a lot of rental property owner make and that is purchasing the wrong type of policy because it might be less expensive. Many rental property owners have regretted purchasing an inadequate policy when an accident has happened and a law suit gets filed against them. Having the proper coverage in place will protect you from placing all of assets in jeopardy. It makes no sense to be penny wise and pound foolish when it comes to purchasing California home insurance for your rental property.

First of all you need to inform your California home insurance company right up front this is a policy on a rental property. Sure it may cost a little more in the end but think of the cost if something happens and you are drawn into a law suit for an accident you had no control. Insurance on your rental property can really get you out of some otherwise expensive situations. With the number of lawsuits increasing each year it is better to pay a little extra on your policy and let the insurance company assume the risk. If a substandard policy is put in place and something does happen it will be found out and the liability will fall on the owner of the rental property. Needless to say this can be very expensive.

Rental Coverage

When considering the purchase of a California home insurance policy for your rental you will want the broadest coverage available. There are a few factors that apply to rental properties that donít apply to your residence. For one you want to make sure all structures on the rental property that are accessible are covered under the policy. This would include decks, patios, garages and sheds. If they are destroyed, damaged or someone has an accident inside of one of them then coverage will repair, replace and protect you from liability. If one of these structures is not named in the policy and an accident occurs the rental property owner could be fully liable for all damages and medical payments.

Another factor to consider outside of repair or replacement of damaged property is the loss of rental income that may result. If there is a fire and you are unable to rent out the property during the time of repair or replacement your California home insurance policy covering the rental property would reimburse you for the loss of rental income. This could be important if a mortgage still exists on the property. Without this type of coverage you might be left to make both the payments on your residence and rental property even though no income is being derived from the rental.

Important California Home Insurance Coverage

Having the proper California home coverage on your rental is important but there are other considerations also. Most companies do offer flood insurance but some only if you purchase them separately. If your rental property is located in a flood zone you may want to consider purchasing flood insurance. In the event of a flood you will be protected by having the coverage in place. Without this important coverage you could lose the rental and still have a mortgage to pay besides. Now if the coverage is too expensive you can check with special programs set up by the government to help property owners obtain affordable flood insurance in particularly high risk areas.

Another important aspect of coverage when purchasing your California home insurance on your rental is life insurance. If the rental still has an unpaid mortgage the addition of life insurance will guarantee it is paid in full in the event something occurs to you. Rather then leaving the mortgage for someone else to pay if you die it will be paid off in full. I know this sounds kind of ominous but some spouses have no income after the other passes and this creates a lot of complications. Life insurance would help to avoid some rather complicated situations. The expense involved in credit life insurance is small compared to the peace of mind it can provide knowing the mortgage would be paid. Talking to your insurance company or you personal insurance agent about the proper coverage for your rental property is always a good idea.

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