If you own a business that focuses on renting sections of space by the night, by the week, or for months or years at a time, you need rental property insurance. Some types of businesses that use this type of insurance include apartment complexes, townhouse complexes, condos, bed and breakfast inns, student dorms, or boarding houses. Rental property insurance mixes together commercial general liability insurance along with a property insurance policy that is tailored to the specific type of property and its purpose. For those who rent out a property, and employ others to help them manage and maintain that property, worker’s compensation insurance will also be something you’ll want to include in your policy in order to protect your staff and your business if anyone happens to be injured on the job.
General liability is the cornerstone of any business insurance package, and it is primarily meant to cover situations where a tenant or one of their guests becomes injured due to some flaw in the property or the way that it is maintained. Slipping in an icy apartment complex parking lot might be a situation that could facilitate a claim against the general liability portion of the policy. Other types of coverage that are more tailored toward habitational types of business include storm damage insurance, flood insurance, theft and vandalism insurance, and loss of rental income.
Wind Storm or Flood Insurance
Milwaukee has its share of storms complete with plenty of storm damage, including hail damage. But often the regular commercial property insurance will not have enough coverage to be able to make the necessary repairs that are necessary to get things functioning again.
It is important to distinguish between what is covered under regular storm coverage, and what needs to be covered under a flood insurance policy. If the wind whips by and carries the roof away, it should be covered by the storm coverage. If individual dwellings are flooded due to excess rain, snow, or overflow from one of Milwaukee’s rivers, you’ll likely need to tap into the flood insurance for the business.
Theft and Vandalism Insurance
While it would be nice if everyone treated every unit of the building you own with respect, the cruel reality is that rental homes can sometimes be targets for theft or vandalism. At a Bed and Breakfast there may be dishes, or various electronics or computers that might be stolen, just as they might be taken from someone’s home. In a student dormitory, apartment complex, or even a condominium building someone might come in and purposely damage the washers and dryers in a community laundry room causing thousands of dollars of damage. Theft and vandalism insurance is what you would turn to in order to recoup these losses.
Loss of Rental Income Insurance
When the damage is serious enough, those who live in the building you own may need to find somewhere else to stay while damages are being repaired. In addition, some tenants may move away permanently at their first opportunity if they are worried about their safety. During these times, you will not be able to collect rent from them, and in some cases, you may even be asked to pay for temporary living expenses. Your Milwaukee insurance agent can help you learn what you need to do to prepare for this type of situation. In many cases, your loss of rental income insurance will cover enough of your income losses to help you rebuild and overcome the setback before you.
When you run a rental property business, it can be difficult to determine which situations you are at the biggest risk of facing. A Milwaukee insurance agent can weigh the various factors and help you put together an insurance package to cover your worst-case scenario to the smaller hiccups your properties may experience. In addition, they can also serve as a resource for those who own condos in a building you own or rent apartments in your complex who are looking for homeowner’s or renter’s insurance to cover the value of their own belongings. Contact us through our online form or by phone to discuss your insurance options or to ask for a quote.