Are you new to the business of rental property management? Before you lease your home to tenants, you should protect yourself and your property with rental property insurance, also known as landlord insurance.
Trying to find affordable landlord insurance as an individual investor can be a difficult process. You may find that a lot of the available insurance policies come with high premiums and limited coverage, and you won’t have much influence when negotiating a strong policy. Don’t settle for an unsatisfactory policy that doesn’t give you the coverage you deserve.
When you choose professional property management in Dallas with SPM, you’ll benefit from our 30+ years of experience. We give our valued customers access to some of the best insurance programs in the nation! With our help, you’ll get customized insurance to fit your individual property needs that you won’t find anywhere else. Let’s dive into the specifics of rental property insurance and what coverage will benefit you.
Homeowner’s Insurance vs. Rental Property Insurance
When you buy a single-family home for the first time, the bank that’s loaning you money to pay for it will require you to purchase a homeowner’s insurance policy. The Texas Department of Insurance (or TDI), says that most homeowners policies in Texas include these six coverages:
- Dwelling coverage pays if your house is damaged or destroyed by something your policy covers.
- Personal property coverage pays if your furniture, clothing, and other things you own are stolen, damaged, or destroyed.
- Other structures coverage pays to repair structures on your property that aren’t attached to your house. This includes detached garages, storage sheds, and fences.
- Loss of use coverage pays your additional living expenses if you have to move while your house is being repaired. Additional living expenses include rent, food, and other costs you wouldn’t have if you were still in your home.
- Personal liability coverage pays medical bills, lost wages, and other costs for people that you’re legally responsible for injuring. It also pays if you’re responsible for damaging someone else’s property. It also pays your court costs if you’re sued because of an accident.
- Medical payments coverage pays the medical bills of people hurt on your property. It also pays for some injuries that happen away from your home – if your dog bites someone at the park, for instance.
Though it looks and sounds fairly comprehensive, a homeowner’s policy just won’t cut it if you decide to rent out your home to tenants. When you work with professional property management in Dallas, we can explain further why homeowners insurance isn’t sufficient for a successful investment property and answer any questions you might have.
“If you own rental property, you have unique business risks and assets that aren’t covered by a homeowner’s insurance policy. And you stand to risk losing your livelihood if you lose your rental income while your building undergoes repairs after an unexpected loss from a fire, flood, earthquake or another type of natural disaster.”thebalance.com
While homeowners get coverage for the contents of the home, landlord insurance focuses on covering only the property and items used to service the property. For example, say there is a small fire in your rental property that destroys the personal items you had stored in the attic, such as a camping tent, extra hardwood flooring, etc. Rental property insurance will cover the damage done to the attic, but not to the personal possessions you had stored up there. If your lawn mower was left out in a storm and gets completely destroyed, it may be covered by landlord insurance since you use it to service the rental property.
“Landlord insurance typically only provides liability coverage relating to the rented premises. If a tenant is hurt in the home you’re renting out and you are found legally responsible, the liability coverage on your landlord policy may help pay for the resulting medical expenses or legal fees. Meanwhile, the liability portion of a homeowners policy typically covers you and relatives who live with you in the home, whether the accident happens in your home or not.”Allstate.com
A Note About Renter’s Insurance
Don’t automatically assume that rental property insurance will cover your tenant’s belongings. Renter’s insurance is not the same as rental property insurance. Tenants are responsible for insurance coverage on their personal property in case of a natural disaster, robbery, etc. You should make this clear to your tenant when you present them with a contract, and strongly suggest they purchase renter’s insurance for peace of mind.
“Nationally, the percentage of insured renters trails far behind homeowners. A 2018 survey by the Insurance Institute found that only 46% of renters had insurance, compared with 91% of homeowners.”DallasObserver.com
Every tenant thinks they don’t need renter’s insurance. . . until they do. In 2019, residents of the Elan City Lights apartment complex in DFW couldn’t have predicted that a construction crane would have crashed into their apartment building due to high winds, injuring 5 people, killing one woman, and destroying their homes and their personal belongings. Those tenants were left with nowhere to live with no warning or preparation.
After tornadoes hit North Dallas in October 2019 and demolished a series of apartments, spokesman Matt Stillwell for the Texas Insurance Council said, “We don’t want to use those tragedies to sell insurance, but we definitely want to use them as a cautionary tale about what happens if you don’t have it,”DallasObserver.com
Professional Property Management in Dallas Offers You Expert Coverage
Our experienced team of professionals can help you decide what coverage you need for your investment property. Standard rental home policies often don’t cover these particular scenarios:
- Water damage from a sprinkler
- Fire caused by lightning
- Pollution and exhaust, such as a deadly carbon monoxide leak
- Hostile fire/arson liabilities
- Dog bites on the property
Our company manages thousands of rental properties. We’ve seen it all, and we are proud to refer our clients to top rated insurers with insurance plans specifically designed to protect rental property. We want our clients to enjoy better coverage, lower premiums, and properly managed Dallas properties. Here’s a full list of exceptional insurance coverage services you can expect when you choose SPM Dallas as your professional property management company:
- Great Coverage: full combined (property/liability) limit of $1M
- Quality Carrier: carrier is A+ rated, national underwriters
- Vacancy Coverage: important to owners, yet rarely covered on typical policies
- Broad Forms: a broad-form policy for wider protection
- Replacement Cost: better than typical “depreciated cost”
- Ordinance & Law: includes $50K with increased limits possible, typically omitted
- Sewers & Drains: includes $25K for backups in all locations, higher limits available
- Reliable Support: 24-hour customer service and claims hotline ready to serve you
- Simple Billing: included in your monthly management fee (with premium remitted to the carrier by a licensed agent)
- Additional coverage is available for flooding and earthquake protection
At Specialized Property Management Dallas we offer InvestPro Residential policies to give owners rental property insurance from a quality carrier with national underwriters and A+ rating.
Policies from InvestPro Residential Cover:
- Water damage from sprinklers
- Texas weather including wind, hail, tornadoes
- Theft and vandalism damage
- Fire damage from lightning
- Assault and battery
- Carbon monoxide, exhaust, and pollution liability
Specialized Property Management gives investors a clear choice with InvestPro Residential for rental property insurance that is customized for each client’s specific needs. Policies can be consolidated for all rental properties in an owner’s portfolio and are conveniently available. Specialized Property Management Dallas offers a comprehensive list of property management services and insurance coverage options all with the integrity that you have come to expect from our company.
Specialized Property Management is not an insurer or an insurance agent and does not engage in the business of insurance. InvestPro Residential refers to a master liability and property insurance program issued by one or more top-rated insurance carriers under which clients of Specialized Property Management can be included as insureds. The InvestPro Residential master policy is brokered by Swingle Collins & Associates, an independent, licensed Texas insurance agency. Swingle Collins & Associates is the point of contact for all questions concerning the InvestPro Residential master policy.
The descriptions of the InvestPro Residential coverage are brief summaries only and are subject to the provisions, limitations, and exclusions contained in the actual policy and related endorsements. The information on this website is provided for general informational purposes only and does not include all the terms, coverage, exclusions, limitations or conditions that may be contained in the actual insurance policy. The InvestPro Residential policy itself must be read for those details. A sample policy form can be made available upon request to Swingle Collins & Associates.
Don’t settle for high rates and low coverage for your rental. Successful, professional property management in Dallas depends on good coverage. Our company has a 98% Customer Satisfaction Rating and the lowest eviction rate in the DFW metroplex. Our 24/7 maintenance hotline keeps both landlords and tenants happy and informed. Our comprehensive property management services keep tenants happy and your property in excellent condition.
Put our team, experience, and ethics to work for you. Contact your Specialized Property Management Dallas team today at 214-233-7572!