Property Management Brainstorm
Welcome to Property Management Brainstorm, the ultimate podcast for property managers, PropTech ventures, and real estate investors! Join industry expert Bob Preston as he brings you the latest trends, best practices, and invaluable guidance in the world of property management. Whether you're just starting or thriving in the business, Property Management Brainstorm is your go-to destination for all things property management.
Bob is a nationally known figure in the USA property management industry with over 25 years of experience in building and growing property management companies while advising more than 28 property management locations and 12,000+ doors. He has been awarded three prestigious designations by the National Association of Residential Property Managers (NARPM): the RMP® (Residential Management Professional), MPM® (Master Property Manager), and the CRMC (Certified Residential Management Company). He served as President and board of directors of the California State Chapter (CALNARPM) for 2020-2023 and on the NARPM National Board of Directors as the Southwest Regional Vice President (2022).
Property Management Brainstorm
Five Minute Friday #3 - Insurance Coverage for a Rental Property
In this Five Minute Friday, Bob discusses the proper insurance coverage that a landlord should have at his rental property before placing a tenant. With Long-term Rentals (typically unfurnished, rented under a 12-month lease) there are two types of insurance policies that should always be required.
The first type of insurance is a “rental dwelling” policy:
- The rental dwelling insurance policy should be a minimum of $1,000,000 public and premises liability insurance.
- Rental dwelling policies usually cost less than homeowner policies because the owners personal belongings are typically moved out of the home and do not need to be covered.
- The rental dwelling designation is critical if the house were to become uninhabitable. In such a case, the insurance would pay the property owner’s lost rent during the rebuilding period.
- Property managers will require current proof of a rental dwelling insurance policy to be on record in their office and will likely want to be named as additionally insured (this is standard procedure with insurance companies).
The second type of insurance is renter’s insurance, obtained by the tenant, to protect their personal belongings and provide for tenant liability coverage.
In addition to protecting the tenant’s belongings, renter’s insurance protects the landlord from large scale incidents cause by tenants and would also pay for temporary housing for the tenant if the home is uninhabitable.
There are a few derivatives of these insurance policies which may need to be considered:
- If the property is rented furnished.
- If the property is a short-term rental (vacation rental).
- Traditional renter’s insurance is not practical with a short-term rental.
Links to References Mentioned:
- Episode 2: The Correct Insurance for a Rental Property
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https://www.propertymanagementbrainstorm.com/
This episode is always available for listening, sharing, or download at Property Management Brainstorm. Subscribe to Property Management Brainstorm on Apple Podcasts, Google Podcasts, Stitcher, Spotify, TuneIn, iHeart Radio and YouTube.