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Rental dwelling insurance is coverage that provides protection against financial losses to landlords who rent a house, apartment, condominium, a loft, or perhaps a townhouse to another person to be used as a home. The landlord rents the space as an investment that will generate revenue, or that can serve as collateral for other financial transactions he or she person might wish to make. It is in the landlord's best interests, therefore, to safeguard the investment in every possible way with some kind of landlord rental insurance. He or she will institute a rental dwelling insurance policy especially developed for property owners who rent.

The landlord's rental dwelling insurance will cover the building and such parts as floors, walls, roofs, any improvements made by the landlord, and other aspects peculiar to the rental situation. The landlord might want to purchase rental income protection for the dwelling against the possibility that the tenant stops paying rent, and will also buy natural disaster coverage specific to the region.

Tenant's Rental Insurance

When the other person signs the lease to rent the space, the landlord will also require that person to purchase rental dwelling insurance to provide protections against loss of the renters property and as bodily injury liability coverage in case someone visiting the tenant or living with the tenant gets injured. The tenant is to all intents and purposes the homeowner of the rented space, and has the related rights and responsibilities. This is the other side of rental dwelling insurance that rounds out the protections for all parties to the rental contract.

The Insurance Services Office (ISO) has stipulated minimum standards for the clauses that have to be included in standard coverage policies for dwellings. The tenant will look for these in the insurance contract. These include explosions, falling objects, water damage, and fire, among other risks and perils. In addition, they detailed another list of perils that can be added to the broader form policies. To complete the necessary coverage, the leaseholder will attach a specific rider for each natural disaster that has to be covered depending on where the dwelling is located.

More and more frequently nowadays, landlords are making it compulsory for their tenants to purchase renters insurance and to maintain this for the duration of the lease, whether the tenant is a student, senior citizen, or two newlyweds starting a family. The landlord can request the standard form insurance, and that will normally provide adequate coverage for the renter. To supplement this, and to ensure more comprehensive protection, the landlord will also maintain homeowners coverage, in this case, rental dwelling insurance, that includes natural disaster protection

Landlords Rental Dwelling Coverage

The rental dwelling insurance premium protects all parties and ensures that should any damage come to the structure of the building, or any injury to persons in the home. In all cases it will include bodily injury liability protection. The standard form will be almost exactly the same for both the renter of the dwelling and the landlord, and will cover damage due to fire, theft, vandalism, riots and civil commotion, explosion, falling objects, wind or hail, vehicles and aircraft, and the freezing of house plumbing and other systems. The major difference between the two types of rental dwelling insurance policy is that damage to the structures will be covered in the landlord's policy. The tenant can be compensated if a prize rug is damaged, but will not if the tiles get broken.

The coverage that the landlord purchases will most likely include protection against natural disasters. It is important always to protect against these risks, and it is particularly important when the space is being rented. Damage from any source will not only require a financial layout for repairs, but could compromise the income stream if the tenant has to be moved out while repairs are going on. During the time while the tenant is not paying rent, the landlord will be suffering a double loss if there was not adequate coverage to provide the financial compensation to make the repairs.

Natural disasters are events that happen in nature, on a normal basis. Wind is a natural event that normally causes no damage. However, there are times when the intensity is so great that roofs are blown off, windows shattered, trees fall onto cars, and other events of that nature. When this happens it is referred to as a natural disaster. If it affects large numbers of people over a wide area, and they suffer truly extensive damage, it will probably be called a catastrophic event. A hurricane is a natural disaster that could also cause flooding which is in itself another kind of natural disaster.

The landlord will want to purchase rental dwelling insurance as protection against any possible financial loss in the event that a flood, earthquake, or hurricane damages the dwelling. With this coverage insurance company will pay for the repairs to the rental property.