Over the last few years many homeowners have turned into landlords.
With the real estate market drop, those that decided to purchase a new
house also decided to not sell their prior home for fear of a financial
loss on the property. Instead, they have turned their prior house into a
rental. The trend still continues today even after the real estate
market has rebounded some because landlords are seeing great cash flows
from renting.
Here at Fey Insurance Services
we insure a number of these properties and on occasion we are asked by
clients if we have any insurance tips in renting a property. When asked
we always mention these two things:
1.
Temperature Requirement in the Lease: It is a good idea to include a
clause in your lease that requires the tenant to keep the heat no colder
than 59 degrees. This is important because around the Holidays many
tenants will travel and if they want to try and save a buck they may
turn off the heat. Pipes do not enjoy this especially with a polar
vortex threatening again this year. This way, if they do turn the heat
off and pipes break you can pass that damage on to the tenant.
2. Renters Insurance for Tenants: Since you may have passed on the
risk of pipe freezing damage to your tenant you then want to make sure
they have insurance in place to pay for such damages. Requiring tenants
to have renters insurance is a good idea. Not only does it protect
their contents (which is excluded under your policy), it protects your
property if they are negligent in causing damage to your property. I
would recommend they have liability limits at least the value of your
property.
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