I’m back with Mike Reilly from Farmers Insurance to talk about the difference between getting coverage for your primary residence versus rental properties.
From a coverage standpoint, the key difference is really just a matter of the contents. As a landlord, you’re not necessarily going to be covering your tenant’s clothing, TVs, sofas, or similar items. From a cost standpoint, it’s very similar to a homeowners policy because we’re covering the dollar amount.
For those who own a rental property, you should have very high limits of liability. In California, you don’t need to be a millionaire to get sued like one. Not to mention that tenants and their guests sometimes do silly things. At the end of the day, you own the property and are responsible for what happens.
What are some of the differences between a single-family and a condo?
The difference is that when it’s a condo, you’re insuring from the walls in. You’re not necessarily insuring the entire structure. It’s really more of a policy that covers personal contents as well as improvements to the unit.
If you’re looking to get more information about insurance, I highly recommend that you reach out to Mike Reilly with Farmers Insurance. For any other questions, feel free to contact us here at Gold Star Mortgage Financial.