We should never underestimate wind power; it can be gentle as a summer breeze yet strong in destruction. Although not every area is prone to wind damage, it seems like you still need to worry about winds in view of the damage it can wreak on the property. Although rental property insurance covers some forms of wind damage, it depends on the insurer and the policy. There are five areas that will affect the level of payout for wind damage. Read on to find out what they are and how you can maximize your claims.
How Comprehensive is Your Plan?
Like any other insurance plan, rental property insurance comes in three tiers: the basic tier, enhanced tier, and the most comprehensive tier. The most basic plan is usually the cheapest and indemnifies you for common events like vandalism. The enhanced tier extends coverage to wind and hail damage. And the most comprehensive plan, which is also the most expensive one, covers you for any not expressly stated risks. Your compensation will depend on the type of policy you purchased.
What Type of Property is Damaged?
Damage claims of a property will differ from structure, building, number of units, and location—the larger the property, the larger the premiums. Suppose you have an apartment complex; you can expect to pay more for insurance than a single duplex. Certain areas are geographically more prone to wind and wind disasters such as hurricanes or tornadoes, so you can also expect premiums to cost more for these areas.
What Structures Does It Cover?
A policy with wind insurance covers only the external standing structures, like the foundation and the roof; it may also cover unattached structures like the shed or the garage. Unfortunately, all the other necessary items inside the building are not. Instead, things like kitchen appliances, boiler, laundry, and more are covered under the renter’s insurance policy.
Do You Have Rental Income Insurance?
The primary purpose of renting out your property is for the rental income, and unforeseen damages can cost more than repairs. During the time when your property is undergoing repairs, there is a loss of rental income. Upon completion, your property will take some time to be tenanted again. Rental income insurance covers you for the income you may lose in the unfortunate event that your property becomes unlivable.
Do You Have Depreciation Coverage?
You may choose whether your coverage covers the Actual Cost Value (ACV) or Replacement Cost Value (RCV) of your lost things in your policy. Although ACV policies have lower premiums than RCV ones, they also have a lower payout, paying out the cost of the item after deducting depreciation. RCV policies cost more, but they allow you to “replace” the covered items. Saving money with a lower premium may turn out to cost you more.
It is easy for landlords to be confused by what can be covered and what cannot. Let Stone Claims Group investigate the problem and help you maximize your claims. Contact us today to learn more about how we can help.