Your rental business, regardless of how big or small, faces unique risks and challenges. You have many of the same risks of a typical business owner blended with the risks of a homeowner, too. Habitational insurance covers a wide range of losses, potentially saving you thousands of dollars in expenses. At Luxor Insurance, we offer habitational insurance for a wide range of single and multi-family properties, some of which include:
- Single-family rental properties
- Duplexes
- Fourplexes
- Dorms
- Apartments
- And more
Risks and Hazards
If you rent your property to tenants, you are responsible for maintaining a building that is safe for them and their visitors. You also have an obligation to create a safe work environment for any employees you may hire to service and maintain the property, whether full-time or part-time. In addition, the threat of hazardous conditions here in Indianapolis is very real. Your properties could succumb to high winds and tornadoes, ice and snow, falling objects, fire, explosion, theft, vandalism, and more. Would you be prepared if the unexpected occurred? Could you afford the sudden and unexpected cost of rebuilding your property, losing your rental income, or defending yourself in a lawsuit?
Habitational Insurance and Other Types of Coverage
At Luxor Insurance, we take your risks very seriously. We can custom-tailor your habitational insurance and other commercial coverages to minimize your financial exposure to risks. Your coverage could include:
General Liability
General liability coverage protects you up to the limits of your policy when you are found responsible for your tenants’ and/or their visitors’ injuries, illness, and other losses. For example, if mold growing behind the walls of your duplex unit causes the tenants to become ill, general liability can help cover your court costs, as well as any judgments against you for the cost of the victims’ medical bills and other losses.
Property Damages
If your rental property is damaged or destroyed due to a covered event, your property damage insurance can help cover the cost of clean-up, remediation, and restoration. Be sure to ask about all-risk coverage that pays for damages caused by any loss event except for those specifically excluded in your policy, such as earthquakes and floods. Coverage for these types of events may be available in addition to your primary property insurance coverage.
Equipment Breakdown
The cost of repairing or replacing your property’s physical equipment can add up to thousands of dollars. If the HVAC unit on your rental home breaks down or is damaged due to a covered event, equipment breakdown coverage can help cover the cost of repair or replacement.
Loss of Income
When your rental property is uninhabitable due to a covered event, loss of income coverage can help replace your rent and maintain your cash flow until the property can be rented again. Similar to business interruption coverage, this type of protection can also help you continue paying the salaries of your employees, as well as your bills and maintenance costs until your property is restored and remediated.
Law and Ordinance
When local municipalities pass laws and ordinances that affect your property, it could result in major losses for your rental business. For example, if a new ordinance requires you to remove or reconstruct a portion of your duplex or rental home, this type of insurance can help cover your losses.
Workers Compensation
If you have employees – even just one – you need workers compensation in Indiana. This coverage is based on a no-fault system that assures benefits to employees when they are injured while working. It can also absolve you of most additional liability related to the incident. (Workers compensation insurance is not generally necessary if you outsource your maintenance work to independent contractors.)
Cyber Liability
As a landlord, you are responsible for protecting the sensitive information you store about your tenants. This includes their Social Security numbers, credit card numbers, names, addresses, and other private data. If you are the victim of a data breach, cyber liability insurance can help cover the cost of legal fees, fines, credit monitoring for your tenants, and more.
Excess Liability (Umbrella Insurance)
Even with the highest limits on your primary liability insurance coverages, you could still come up short of the money you need to cover all of your legal fees, judgments and settlements against you after a major lawsuit. For example, if you owe $1 million for an injured tenant’s medical bills, long-term care, and lost wages, your $500,000 general liability limit could leave you with a half-million-dollar debt. Excess liability insurance is designed to pick up the remainder of the bill up to the limits of your policy, minimizing your out-of-pocket costs and protecting you against financial ruin.
Indianapolis Habitational Insurance Quotes
If you own one or more rental units in the Indianapolis area, you need habitational insurance that is customized to fit your unique needs and vulnerabilities. At Luxor Insurance, we work with you to assess your risk exposures and build a coverage plan that closes gaps and protects the financial integrity of your business for years to come.
Whether you own one rental property or several, we want to help you protect your assets and cash flow. Contact our office today to find out more about Indianapolis habitational insurance and to request your free quotes. We look forward to serving you soon.
