If you’re the owner of a rental property, you’ll need to choose between homeowners and rental property insurance. Various factors—such as the nature of your rental agreement and coverage limitations—will determine which type of insurance is best for you. Here’s what you should know to help you make your decision.

What Type of Coverage Are You Looking For?

When looking for the right insurance, the first step to making a sound decision is to understand what each type entails. With rental property insurance, any structures owned will be protected against certain events. However, personal belongings are not covered like they are by a homeowners policy.

Liability coverage is also included with a rental property policy. That means, if a tenant is injured by conditions that you’re responsible for maintaining, a liability policy can help cover their medical costs and legal expenses. With a homeowners policy, only residents and guests of the home will be covered in the event of an injury. 

How Long Will the Property Be Rented?

The terms of a lease agreement is another factor to consider when searching for a comprehensive insurance policy. Long-term leases require a rental policy, as you won’t be able to secure homeowners coverage if you’re not currently living in the home.

If you do live in the home but still rent it out on occasion, you might be well-protected by your existing homeowners policy. However, the exact details of your situation will dictate if a home policy works. In this case, it’s recommended that you confer with an insurance agent to make certain your home is protected.

With an amazing 126 years of experience, Barron Mutual Insurance Company in Wisconsin provides local clients the coverage they need to protect valuable investments like rental properties. If you’d like more information about implementing rental property insurance, feel free to visit their website. You can also call (715) 537-5141 to speak with a Barron insurance agent about your specific needs.