Landlord Tips: Protect Your Investment From Loss

Landlord Insurance Basics and Tips You Need to Know

Whether you are a new owner of a rental property in Oklahoma, or just an a landlord who wants to make sure they have the right coverage and compare pricing, the following information may help you:

Basic landlord policies in Oklahoma typically include:

• Building insurance for damage to structures such as the rental home or apartment complex, as well as outbuildings like sheds, garages, or fences, retaining walls and swimming pools. Building coverage also usually covers any gardening and maintenance tools and equipment you personally own for maintaining the property.
• General liability coverage for accidents and injuries that might occur on the premise.

You typically do not need to insure personal property such as clothes, furniture or jewelry because your tenants are responsible for insuring their own belongings with renter’s insurance. NOTE: the exception to this is if you are leasing a furnished home or apartment you will need to purchase contents coverage for the belongings in the leased space.

Replacement coverage versus Actual Cash Value or Agreed Amount?

The question of what type coverage you can purchase for your rental home may be pre-determined by the insurance company due to the age and condition of the home. Large investors may wish to insure a portfolio of homes with agreed or actual cash value policies. Replacement coverage is usually to be desired; especially if you are a small investor that only owns a few properties. Every situation is different but the good news is we at Perimeter Insurance Agency can assist you in shopping several different companies and determining what makes the best sense for your situation.

Additional Coverage to Consider:

Here is a list of some additional types of coverage you may wish to consider:

• Coverage for Loss of Rents- This coverage helps you replace the loss of the rental income you may lose if the building becomes uninhabitable due to fire, flood, storms or damage caused by a tenant.
• Coverage for Legal Fees- If you do have a legal claim filed against you, there are many costs associated with such an event. Legal fees can be high and many landlords don’t have the funds. Your liability coverage is designed to help you cover the cost of litigation.
• Umbrella Liability- An umbrella policy provides broader liability coverage with higher limits to help cover unforeseen bodily injuries, property damage and legal claims.
• Worker’s Comp- If you have a staff that maintains your grounds or provides any kind of building maintenance, you may need worker’s comp insurance for your employees.
• Additional natural disaster coverage- Just like your homeowner policy damage from flood and earthquake is not covered and you may want to consider adding additional coverage for these natural disasters.

DON’T FORGET THE DISCOUNTS!!

Oklahoma landlords  like to make money but they also like to save money and improve their bottom line! Read on to see if you may qualify for discounts on your rental properties and don’t forget to ask about them when you contact us here at Perimeter Insurance.

• Ask about multi-policy discounts for properties and vehicles
• Ask about discounts for newly upgraded/renovated properties
• Install working smoke detectors, motion detector lights, security cameras or alarm systems
• Ask about discounts for business practices in screening tenants
• Ask about a discount if you utilize a property management company
• Consider increasing your deductibles rather than reducing coverage to save money

No two companies cover property owners the same way which means prices and coverage will vary. The good news is that your Oklahoma Trusted Choice agency, Perimeter Insurance can help Oklahoma landlords shop several companies at once and we will review your current coverage to help you get the right coverage at the most affordable price. We are committed to the success of your business. Whether you are a new rental property owner or a seasoned owner, team up with Perimeter Insurance Agency to insure the success of your business. Call us today for a free review or quote at 405-778-8880 or email us at perimeterins@coxinet.net.