Have you ever wondered if you can buy a home warranty for your rental property? Whether you're a homeowner or a property manager, you can purchase a home warranty for any house you own at any time.
Managing a rental property can be a lot of work. When it comes to owning rental property, landlords have a lot of responsibilities, including maintaining the property and ensuring that everything is in good working order.
However, unexpected repairs and replacements can be expensive and time-consuming. This is where a home warranty can come in handy. It can help ease some of the burden and costs associated with care & maintenance.
So, can you buy a home warranty for rental property? Yes, you certainly can! In this blog, we’ve compiled everything you need to know when wondering whether you can buy a home warranty for rental property.
A home warranty is a service agreement offering coverage for repairing or replacing your home's appliances and systems if they fail due to normal wear and tear.
It's important to note that home warranties are distinct from home insurance. Home insurance protects your home's structure from natural disasters such as floods, fires, and theft. On the other hand, a home warranty protects your home's systems and appliances.
A home warranty for rental property can provide landlords peace of mind, knowing they have protection against unexpected repair costs.
Here are some benefits to consider when deciding whether or not to purchase a home warranty for a rental property.
The expenditure of a home warranty for a rental property is classified as an operating cost, making it eligible for tax deductions.
The cost of a home warranty varies based on the coverage selected, with yearly premiums ranging from $350 to $600. When making a service request, the fee typically falls between $60 and $100.
If a rental property's system or appliance fails from normal wear and tear, only the service call fee is usually required for the repair.
As homeowners, you are responsible for ensuring that the systems and appliances in your rental home are adequately maintained. However, with a Landmark home warranty, this maintenance becomes more manageable.
As part of the coverage, you can get a furnace tune-up in the fall before turning on the heater and an air conditioning tune-up in the spring before turning on the unit. These preventative maintenance services are covered by your home warranty, with only the service call fee being your responsibility.
When baffled with the question, can you buy a home warranty for rental property, it is essential to research various providers and compare their coverage options and pricing.
Numerous insurance companies offer landlord insurance with varying costs, particularly if you purchase additional coverage. Generally, you can anticipate paying an annual premium of $1,000 to $1,800.
Nonetheless, receiving a quote from providers is recommended to specify the exact cost of landlord insurance. It's essential to note that rental property insurance is typically 15 to 20 percent pricier than standard homeowners insurance.
Also, reading customer reviews and testimonials to understand the provider's reputation is helpful. Additionally, when selecting a home warranty, it is vital to consider any distinctive needs of the rental property, such as age, condition, and location.
Here are a few more important things to consider when obtaining insurance for your rental property:
Generally, a typical homeowners insurance policy does not cover damages arising while renting your property.
If you are still determining whether your situation qualifies as renting, it is best to contact your insurance provider.
Insurance companies use different criteria to define a rental, including a separate entrance, attachment to the main structure, and occupancy by a non-family member.
Ensuring you understand your insurance provider's definition is crucial in selecting appropriate coverage.
If you intend on renting out your property, it is vital to have landlord insurance. Typically, landlord insurance includes liability insurance, property damage coverage, and loss of income coverage, compensating for lost rent if the unit becomes uninhabitable.
You can also opt for additional coverage, like flood insurance, to enhance the protection of your property.
While not mandated by state regulations, renters insurance is the sole means for tenants to safeguard their possessions since your landlord's insurance does not cover their personal property.
Additionally, renters insurance can shield tenants from having to pay for common incidents like water backup damage and specific natural disasters out of their pockets - this helps safeguard your investment.
A standard homeowners insurance policy may be optional if you rent out your full-time owning property. Nevertheless, if you have furnished the house or stored any belongings there, you will still require home insurance to safeguard these contents.
Is the question of can you buy a home warranty for rental property that you can claim popping in your mind? If you are a homeowner of rental property, you should contact the provider immediately. You must provide details of the issue and may be required to pay a service call fee.
Once the claim is approved, the home warranty provider will schedule a call with a qualified technician to address the issue.
Now that you have the full scoop on can you buy a home warranty for rental property, it's time to get one. Getting a home warranty for rental property can protect landlords against unexpected repair costs and give tenants access to timely repairs.
However, it is essential to carefully consider the pros and cons of having a home warranty and choose a provider offering comprehensive coverage options and reliable service.
We can help you with your property's smooth and efficient management at
Guardian Property Management. Wait no longer.
Call us today at 651-287-2011 and get started!
