Owning rental properties comes with risks that are unlike any other business. Whether you own one rental home or several duplexes, there are certain challenges you face when your job is to provide an environmentally safe home for someone to live in. Habitational insurance helps protect you against unexpected financial losses related to the ownership and upkeep of your rental properties. At Frank Isadore Insurance, we customize habitational insurance to minimize your risks for the Illinois rental properties you own, some of which may include:
- Duplexes
- Four-plexes
- Student housing
- Single-family rental properties
- And more
Risks and Hazards
When other people live or work on the property you own, any safety hazards could turn into a future liability. If a tenant or visitor is injured or becomes ill due to unsafe conditions for which you are found responsible, you could face thousands of dollars in legal fees and judgments. You could also be held liable for the injuries of your maintenance workers and other employees. In addition, there are also risks associated with simply owning your rental properties. If a duplex or rental home you own succumbs to fire or is vandalized by criminals, could you afford the cleanup and construction costs? What about the income lost while the property is uninhabitable?
Habitational Insurance and Other Types of Coverage
At Frank Isadore Insurance, we understand the challenges and hazards you face as a landlord. We aim to provide personalized habitational insurance coverage based on your risk vulnerabilities and potential losses after a covered event. Your coverage may include protection for:
General Liability
General liability coverage acts as a safeguard against legal expenses and lawsuits when you are sued for a tenant’s or visitor’s injuries or other losses. For example, if you failed to repair a loose guardrail and a tenant’s child falls off the stairs due to your negligence, general liability may help cover your court costs, defense fees, and judgments against you for the victim’s medical expenses and other losses.
Property Damages
You may not be able to control mother nature or prevent fires and criminal activity, but you can take steps to protect yourself against these types of unexpected events. Property damage insurance helps pay for damages to your rental properties due to covered events, such as fire, explosion, wind, hail, theft, vandalism, and more. This coverage typically pays for clean-up and restoration of your policy up to the limits of your policy, minimizing your losses to little more than your deductible. Keep in mind that certain events may be excluded, such as earthquakes and floods. Talk to your agent about ways you can broaden your coverage for these types of events with supplemental protection.
Equipment Breakdown
As a landlord, you are responsible for addressing equipment failures in a timely manner. How much would it cost to unexpectedly need to replace the HVAC unit on a fourplex unit in the height of summer? When expensive equipment is damaged or breaks down due to a covered event, equipment breakdown coverage can minimize your losses by covering the cost of repair or replacement.
Loss of Income
You depend on the income you receive from your tenants to help cover the utilities, taxes, and perhaps any mortgage you owe on your properties. If a loss event forces your tenants to find alternative housing, loss of income coverage can help provide cash flow until the property becomes habitable again.
Law and Ordinance
Sometimes the government has the final say when it comes to your property. If your state or local municipality passes a law or ordinance affecting your property, you could be out-of-pocket for the cost of any required changes. Law and ordinance coverage can help cover your expenses and losses if you need to reconstruct part of your rental property due to requirements outside your control.
Workers Compensation
The State of Illinois requires employers to purchase workers compensation insurance. If you have employees (not contractors) who maintain or upkeep your rental properties, you may need to purchase workers compensation insurance. This coverage provides financial benefits to employees if they are injured on the job, regardless of fault. It may also relieve you of financial responsibility and prevent the employee from suing you or your business for additional compensation.
Cyber Liability
As a landlord, you probably store sensitive information about your tenants, such as their credit card or Social Security numbers. Despite your best efforts to protect that information, there are cybercriminals capable of hacking into computers and stealing private data – ultimately putting you and your tenants at risk. Cyber liability insurance helps cover your financial responsibility if you suffer a data breach. This may include the cost of notifying previous tenants, paying for credit monitoring, covering your fines and penalties, and more.
Excess Liability (Umbrella Insurance)
You never know when you might need a little backup insurance to help you cover a major liability that exceeds the limits of your primary insurance coverage. After a major lawsuit, umbrella insurance can help cover the remaining judgments, debts, and legal fees after you exhaust your general liability or other coverage limits. Having a few million dollars worth of supplemental liability could be just the thing that saves your rental business and protects you against financial ruin.
Rolling Meadows Habitational Insurance Quotes
Whether you own and rent a small house on your own property or oversee several duplexes, we here at Frank Isadore Insurance want to help minimize your vulnerability to risk. Call us today for a personalized risk assessment and to request your free Illinois habitational insurance quotes. We look forward to serving you soon.
