Arizona mortgage rental property home insurance tips:
First, THANK YOU to Loel Weatherly! My favorite American Family Insurance Agent! He has provided me some important pointers when it comes to home insurance for those of us that call ourselves landlords.
From Loel Weatherly, American Family Insurance Agency: "... A couple of points come to mind immediately...
•1) The proper policy form should be obtained once the property is rented out...typically called a "landlords" policy, "rental dwelling protection" policy, or a BOP (Business Owners Policy). The standard homeowner policy is not written or rated to provide coverage other than to the owner/occupant of the property.
•2) As part of these types of policies there is generally coverage provided for "loss of rents" or "loss of income" in the event that the property would be uninhabitable due to a covered loss.
•3) Another crucial part of these types of policy forms is the Liability coverage to protect the property owner....typically a minimum of $300,000 per occurrence and in many cases can be increased to $1 Million in coverage for a slight additional premium charge.
•4) Also, coverage for damage to the structure, walls and flooring as a result of a broken pipe either in the wall/ceiling or floor should be included. "
Many times clients call me AFTER something has happened to ask how they should handle it. I am new to this landlord gig so I want to make sure to pass on all that I get as I go through the process!
Again, thanks Loel! You can reach Loel at American Family Insurance at 480.926.2766.
Having a dream is good, owning one is better!
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