Page 27 - AAA Every Day – AAA Hudson Valley – November/December 2019

Landlord Policy: When to Get One
Do you have family living in a home you used to reside in and still own? You’ll want to continue reading.
With another winter and holiday season upon us, you may find thoughts of retiring and moving to a warmer state to be very enticing. If you decide not to sell, it may be your intention to let family take over the property or rent it out. However, if you personally no longer live at that residence, you will need to think about how to insure it.
People often don’t realize that once you move from a property in your ownership, whether or not it’s family or actual tenants who move in, your home insurance policy should be converted to a Landlord policy. Failure to do this could result in a problem in the event of a claim (for example – a fire). You could find out that the dwelling is not insured correctly, and that the occupants’ personal property is, in fact, not covered.
The insured property up for debate can be a “stand- alone” home, condo, duplex or even a triplex. For the property owner, it is essential to work with insurance carriers that can custom build landlord protection policies tailored to specific needs. These carriers also can offer coverage for LLCs, LLPs and LPs.
For the family member and/or renters living at the property, there are several options for carriers who offer
Photo: Shutterstock: William Potter
renters insurance to cover their personal property and can include specialized endorsements.
Once you, as the homeowner, have a landlord policy in place, the following recommended safety measures come into play. To ensure there are no maintenance issues, regular inspections of the property, either by yourself or by someone you hire, will safeguard the property as being taken care of inside and out. When interviewing potential renters, ask for a reference
from a previous landlord and request a copy of the tenant’s insurance policy. Have your tenant sign a rental agreement, so it is understood upfront who is in charge of maintenance for such things as lawn, snow removal, utilities, etc. This is an essential step.
Safeco Insurance, one of the insurance carriers we currently work with to write landlord policies, has a new feature called SmartMove. They have teamed up with TransUnion to help make the landlord’s research possible for future tenants using an online service. They can use the services to check credit history and criminal records to help decide if a prospective tenant is right for you.
For more information on this and other Landlord Policies, call your local AAA Insurance Agent at 518-649-1717 or visit AAA.com/Insurance.
Eman Badr is a Certified Professional Insurance Agent and Manager of AAA Hudson Valley Insurance Agency
NOV/DEC 2019
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INSURANCE NEWS