It can be difficult to handle a rental property if you want to avoid any legal issues. When you rent out a property, you are required to maintain the property in a proper state. If the property is not well-maintained, you could face legal issues, such as a lawsuit from the tenant. This is why it is important to maintain a proper insurance policy on a rental property.
Here’s a step-by-step guide on how to file an insurance claim on a rental property that will hopefully save you some time, money, and aggravation.
• Tell your landlord
If you own a rental property and are responsible for repairs and maintenance, you will be happy to learn that renters in your building can now get their insurance claims settled with the help of your property management company and the tenant’s landlord. This streamlined process should save your tenant money and reduce hassle during tenants’ claims, plus it will help keep your building maintained.
• file a police report if necessary
If you are a landlord, your rental property may have many things that are covered by your homeowner’s insurance policy. But what about if you have an incident that damages items or your property? Can you file a claim with your insurance company and get reimbursed? The best way to get answers to these and other questions is to talk to your insurance agent or contact your insurance company.
• Contact your insurance company
Renters insurance policies exist to protect your personal assets in the event you are unable to keep up with your payments. If you don’t have renter’s insurance, you should contact your insurance provider and get a quote to see if you need it. If you do need coverage, you will want to get the best coverage available as you will be paying for the protection of your possessions in the form of a deductible. Many insurance companies have online calculators that you can use to see what your coverage should be.
• You should Document your losses
A claim for insurance on your rental property is one of the most common homeowners claims, but one that few people understand. It’s important to understand that the insurance company will not cover the entire value of your rental property, but just what’s “insured”. For example, if your rental property is valued at $300,000, and you worry that it will be destroyed by a hurricane, you can make a claim for the value of your rental property. However, if your property is valued at $250,000, and you decide to only have liability insurance on it, the insurance company will only cover the value of your rental property up to $250,000, regardless of whether most of your property is destroyed.
• Finish filing your claim
Every time you rent a property that you own, you’re responsible for the condition of the property. If you want to avoid the nasty surprises that might occur, it’s important that you keep the property up to date. If you don’t, you could end up shelling out even more money on repairs. The process of filing a claim is a daunting one. If you’re a renter, it’s likely that you are not prepared for a claim.
• Update your inventory of personal properties
In the United States, over a third of all households are renters. Since most require one of their tenants to keep their property in good condition, it’s always a good idea to make sure you have a full inventory of personal items and documents in a safe place. Though you may not want to think about them too much, renter’s insurance is a must-have for anyone who owns rental properties. If you own a home or rental property, you probably know how important it is to file a good insurance claim after a fire or other disaster. What you may not realize is that insurance companies do have deadlines for claims—and if you don’t meet them, you could lose a lot of coverage. In fact, some insurance companies require that you report an insurance claim within a certain amount of time after it happens, or they will cancel the claim.
It is always best to be proactive to prevent damage to your property. For example, renters have to file an insurance claim whenever there is damage to their rented property. Both renters and landlords can file an insurance claim against the other party.