Renters occupy more than 140,000 homes in Maine. For some in this state, working as a landlord provides a bit of extra income, while, for others, it is a full-time job that serves as their main source of revenue. Either way, a suitable landlord insurance policy is necessary to protect the investment that Maine’s landlords have made in their rental properties. If you are considering entering the landlord business, know that it is important to compare insurance policies and quotes to make sure that the coverage you purchase is both inclusive and competitively priced.
Residents of Maine have varying housing needs. There are many reasons why people in this state choose renting over homeownership. For example, the economic recession made renting popular because it is a more affordable housing option. Those who attend or work at any of this state’s many colleges and universities may also choose to rent, as their living arrangements are frequently temporary.
Landlords in Maine can benefit from this need for affordable and temporary housing. Those who own properties on Maine’s beautiful coastline can make a lot of money renting their homes by the week or month to tourists and vacationers. Landlords with properties in college towns, such as Augusta and Farmington, can count on a steady stream of renters during each successive school year.
Regardless of where your rental property is or whether you provide renters with long- or short-term leases, you would be wise to protect your investment with a top-rated landlord insurance policy.
Those who are new to the business of renting out property are often surprised to learn that most traditional homeowners insurance policies will not cover damage to the home if there were tenants living in it. A landlord insurance policy is necessary to cover loss, damage or liability expenses that occur in your Maine rental properties.
You can expect your landlord insurance policy to be a bit more expensive than traditional homeowners insurance would be. This is because there are more inherent risks when tenants occupy your property. Your tenants need to cover their personal belongings themselves through a renters insurance policy. You, however, are responsible for covering damage to the home, your own personal property and any liability expenses that may arise.
Your policy rate will depend on a number of factors including the following:
A bit of wear and tear in an occupied home is to be expected, but tenants may cause extensive damage to your rental home. Weather events, particularly along this state’s coastline, can also lead to property loss and damage to your home. Hurricane force winds, severe storms and hail can all lead to damage both to the structure of your rental home and to your own personal property such as appliances, carpets and fixtures that you include within the home.
When you purchase your landlord insurance policy, be sure to purchase enough coverage to rebuild your rental home if a disaster, such as a fire, destroys it, and to have enough contents coverage to replace any items you include with the home.
Keep in mind that landlord insurance does not cover flood damage. To protect your home from the damaging effects of an overflow event, be sure to supplement with a flood insurance policy. These policies cover the building only. Your tenants will have to cover their personal belongings with their own contents-only flood insurance policy.
Although the burglary rate in this state is relatively low, rental units are statistically more likely to be broken into than are homes occupied by the homeowners. Burglaries and thefts may result in property loss or damage to your rental property. Renters insurance would need to cover any personal items stolen from your tenants, but you would be responsible for damage to your own property, such as broken-in doors or windows.
In the event that your home were damaged or your own personal property, such as appliances or fixtures in the home, were taken, your landlord insurance would provide coverage so that repairing or replacing these items would not create an undue financial burden on you.
Your landlord insurance policy will also protect you from liability if your tenant or one of your tenants’ guests is injured or suffers property damage while on your property. Other examples of problems for which you may be held liable include:
Your landlord insurance provider will often attempt to settle all claims out of court. If a covered event does go to trial in Maine, your landlord insurance policy will cover your court costs and any legal fees you accrue in your defense as well.
Whether done online or by telephone, however, comparison-shopping for landlord insurance can be time-consuming and frustrating. Working with an insurance agent in the Trusted Choice® network can save you time and money. These independent agents can work with many different insurance carriers to provide you with a variety of competitively priced policies from which to choose.
Contact a Trusted Choice agent near your Maine residence for more information on landlord insurance quotes.