If you own a rental, Airbnb, apartment complex or hotel, you’ve probably heard of habitational insurance. This insurance protects you against a variety of costly situations.
Why Habitational Insurance?
Although it might seem like extra coverage over a regular liability policy, it is not. Habitational insurance protects you against situations involving your tenants or renters such as flooding regardless of the cause. Habitational insurance carriers often provide coverage that general liability does not.
What Does It Cover?
Not only does habitational insurance cover the basics like wind, fire, storm and hail. It also covers catastrophic breakdowns such as heating, cooling, and water systems. These are three very important systems depending on what part of the country you live in.
This insurance covers the cost of replacing things, but it can also cover the cost of the rent you lose. If your tenants had to move out because of mold or pollution, you would be on the hook for remediation, and you wouldn’t have your rental income. This is just one of the situations where this insurance can help you recover quickly.
It even covers arson, loss of income and theft. It closes the gaps in liability insurance for landlords.
Habitational insurance covers what regular liability doesn’t. If you have tenants, particularly in high volume situations, it can save you thousands in repairs and lost rent.