Rental Property Insurance in New Hampshire
What is Rental Property Insurance?
New Hampshire landlords invest a lot in their properties, and those investments ought to be protected. Rental property insurance policies help landlords protect themselves and their buildings from a variety of possible risks.
Rental property insurance policies are specialized policies that have been crafted to meet the risk mitigation needs of landlords. Although these policies are similar to other property policies at points, there are important differences between rental policies and other policies property owners might purchase.
Who in New Hampshire is a Rental Property Policy Right For?
Most people and businesses that own residential investment properties in New Hampshire should have a rental property policy in place.
For many landlords, carrying a policy that has minimum coverage levels may even be compulsory. Many loans contain minimum coverage requirements that landlords must maintain in order to protect the lender’s investment.
Even when landlords aren’t under an official obligation to carry insurance, purchasing a rental property policy is still generally advised. Without a policy, a single incident could leave landlords financially devastated.
What Protections Will a Rental Property Policy Provide?
As is true with most insurance policies, the particular coverages that a rental property policy provides can vary. Depending on what protections are selected, a policy might come with property, liability and other coverages.
Rental property coverage normally offers protection for the structure of an investment property. Should the property be substantially damaged or destroyed in a covered incident, a policy may pay to repair or rebuild the dwelling. If desired, coverage for secondary buildings, appliances and other items may also be available.
Rental liability coverage usually protects landlords and/or their rental businesses from some potential liability lawsuits. Any liability protection that’s offered is normally limited to incidents directly related to renting or the rental property.
The other protections offered help with a range of potential expenses and income losses. Some examples of these coverages include:
- Loss of Income Coverage, which might supplement revenue if a covered disaster results in lost or reduced income
- Legal Assistance Coverage, which means that the insurance company may hire and pay the expenses related to defending you against a covered liability claim related to the rental property.
An insurance agent who specializes in these policies can help landlords select the coverages that are right for their situation.
Are Tenants Covered by Rental Property Policies?
Rental property policies generally don’t provide any protections for tenants or their belongings. Tenants are normally responsible for insuring themselves, which they usually do through their own renters insurance policy.
Will a Homeowner's Policy Cover a Rental Property?
A homeowner's insurance is designed for an owner-occupied dwelling. If the dwelling in question is not strictly occupied by an owner, it is strongly suggested that you speak with an insurance professional to discuss the particulars of your situation as different carriers have different underwriting guidelines.
If you rent out the entire property all the time, this would need to be insured on a rental property policy. If you rent out a room in your home, or your secondary home occasionally to earn a little income this may or may not require a separate policy. The bottom-line is don't assume. Coverage is typically available for any situation but only before a claim occurs - not after.
Another point is that even if the home insurance carrier allows the home to be rented in any capacity, there would most likely not be any loss of income coverage as homeowners policies generally don’t provide any sort of revenue protection.
Conversely, if you live in a home you typically, or used to, rent out you want to make sure that homeowner's insurance is in place vs. a rental property policy. The reason is because many rental policies have limited, if any, coverage for personal property. Homeowners insurance automatically includes coverage for most personal belongings so this could be a large gap in not insured correctly.
Are Rental Property Policies Expensive?
Rental property policies are typically quite affordable. Rates can be influenced by a property’s location, number of units, square footage, construction, zoning and other factors, but most policies tend to have reasonable premiums.
An independent insurance agent can help investors determine how much insurance for their properties would cost by comparing rates from different insurance companies. Since independent agents can request quotes from several insurers, comparing different rates with them is easy.
Are Rental Property Policies’ Premiums Tax-Deductible?
Since rental property policies are normally businesses, premiums paid to insure these properties are normally tax-deductible so long as the coverage only protects an investment property. Because tax laws change, property owners should consult a qualified tax professional to confirm that they can deduct their paid premiums.
How Can Property Owners in New Hampshire Get Rental Property Insurance?
For assistance insuring one or more rental properties located in New Hampshire, contact the team at HPM Insurance. Our independent agents have helped many residents and businesses insure investment properties, and we’re here to get you the right rental property insurance for the places you have.