Blog Post

If I want to rent my former primary residence, what should I consider about insurance?

Dustin Edwards • May 01, 2020

Take Time to Consider Your Insurance Needs

House Keychain with Keys
One of the ways that many people get into rental property ownership is by keeping their primary residence when they move. We have seen it time and time again. At times people move out of the state and want to keep their asset to allow them to move back. Other times people have stayed in their homes for 10 years and are ready to move to a different local neighborhood and figure others just would love to rent in a nice area that they too have enjoyed.

While we aren’t licensed insurance agents we wanted to share our tips for ensuring you are prepared when it comes to covering your rental property.

Landlord Insurance
This is the equivalent insurance to your homeowners insurance when you start renting your home. This would cover your property in an event such as a fire or other covered catastrophe. When you are looking at landlord insurance compared to your traditional homeowners insurance some of the key differences to consider are the following:
  • Loss of Rents - In the event of a covered catastrophe how long will your loss of rents be covered for? Especially as this is not your primary residence this is a key factor to understand as insurance can then help you pay your mortgage while it is under repair. Many policies will list this as an option, just make sure to ask how long you are covered for in the event a covered incident occurs.
  • Liability Coverage - On your primary residence you may not have given this much thought as after all you and your family are the primary ones on the premises. With your rental property in Long Beach you will want to understand how much coverage you have for liability protection. We recommend speaking with your insurance agent to understand how much is appropriate given your specific scenario.
  • Personal Property - You might be thinking...but it’s a rental, not my property, what would I have there? Especially in Long Beach you might have provided such items as a lawn mower, washer/dryer, or even a refrigerator and these could be covered under the personal property provision. Outline to your insurance agent the items of personal property you have on premises and determine if they are covered.
Umbrella Policy
As an individual property owner you may or may not have an umbrella policy. In simple terms an umbrella policy is additional coverage that can be used when a specific policy (i.e. home, auto) hits a policy limit. Umbrella policies are very common and even if you don’t have a rental property we would suggest that you investigate this type of policy to see if it is right for your situation.

It is generally recommended to have an umbrella policy with a rental property as the aspect of dealing with the unknown on a regular basis can necessitate having an additional layer of insurance protection.

Renters Insurance
Renters insurance is not a policy that you as a rental property owner get; however, understanding that it is available for your tenants can save you awkward conversations. Renters insurance can help your tenants replace items in the event of incidents such as theft. We recommend sharing with your prospective tenants, as part of your welcome packet, that you recommend renters insurance to help them have the best possible experience while they rent from you.

When it comes to insurance there are many aspects to consider as these are just a few of them.  
To help you understand more about your options we invite you to call us today at (562) 888-0247 and we will be happy to share our resources for insurance. Or if you prefer a complete evaluation of your property we invite you to fill out our Free Rental Analysis.

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By Dustin Edwards 01 May, 2024
Everyone wants to feel safe in their homes. As an investment property owner, it's up to you to decide whether or not to include security measures in your property. Many of the costs associated with the security measures can be included in the rent, meaning not only can you keep your property safe, but you can earn more income in the long run. However, you would still want your tenants to have renters insurance to protect their assets. Today, we’ll discuss the top five security measures you can add to your property and why they're beneficial to you and your tenant. Security Cameras Cameras are probably one of the first security measures people think about when asked about security. Cameras provide more benefits than just surveillance. They provide an extra level of security for the safety of the tenants and their belongings. Additionally, security cameras can be useful when repairs are required. Cameras can aid in supervising repairs and maintenance to ensure you’re receiving the agreed-upon work. During vacancies when the property is empty, security cameras can help keep the property safe from potential intruders. Doorbell cameras are incredibly popular now. They provide the aforementioned safety of a camera that can be accessed remotely, as well as the ability to communicate with visitors. Although one must be careful never to say you're not home, just say you're unavailable to strangers. Security Lights Security lights with motion detectors are another effective tool when adding security measures to your property. These lights brightly if a potential intruder attempts to get near your home. They can provide enough illumination to see the intruder or, at the very least, scare them off. Nowadays, you can find a combination of security cameras and motion-activated security lights, such as the floodlight cam wired plus from Ring . Additionally, because these lights only turn on when motion is detected, they’re more cost-effective than traditional lights with a switch. Illuminate the Property Light generally deters intruders as it's more difficult to hide. Adding lighting to the landscaping can increase the security of the property while creating a relaxing atmosphere. Lights can also be used in other areas of the property to accent features such as trees, benches, or artwork. This can help your property stand out while giving your tenants an additional feeling of safety. Keyless Entry Keyless entry is seen as both a convenience feature and a security feature. They usually use an electronic passcode, biometric data, or grant access through a smartphone app. Physical keys can be lost, stolen, or duplicated. You reduce the risk of unauthorized entry by eliminating the need for a physical key to enter the property. Many keyless entry systems include several features, such as remote locking and monitoring. Although keyless entry is a great new technology for keeping your tenants and properties safe, they’re best used with other security systems. Security Company Nothing beats having an extra pair of eyes on your property for security. This is where security companies like ADT and SimpliSafe come in. While companies may deal with security in varying ways, they aim to protect your investment. While safety is the primary role of a security company, remember that many tenants may be willing to pay more for a premium amenity like a home security company. Keeping your property and tenants safe is incredibly important to the longevity of an investment property. If you’re looking to improve the security of your Long Beach rental property or need help managing your beach city rental property, we invite you to call us today at (562) 888-0247 or fill out our Owner Application online .
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