Landlord insurance typically does not cover costs incurred in a squatter situation. Proper Insurance, a provider of short-term rental insurance, has created a unique type of coverage in response to the coronavirus pandemic. This is intended to protect property owners if their landlord refuses to move out after the end of the lease.
If an individual decides to convert their property into a rental, they will need insurance separate from homeowners insurance.
According to Investopedia, landlord insurance traditionally covers things like property damage, loss of rental income if something happens to the property and makes it uninhabitable, and liability protection.
Proper Insurance, which provides short-term rental coverage to property owners, has created a way for individuals to be financially protected from squatter situations.
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Additional common coverage options include flood insurance, emergency coverage, income protection insurance, and additional construction costs.
One type of coverage that is often not covered by homeowners insurance is squatter coverage.
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Squatter situations can place huge costs on the shoulders of property owners.
“One of the problems, especially with squatting, is that squatters have property damage,” Nick Massey, sales manager at Proper Insurance, told Fox News Digital by phone.
According to Massey, Proper Insurance’s squatter coverage covers the legal costs and loss of income that can result from a squatter, as well as the property damage it causes.
Squatter protection coverage offered through Proper Insurance is used when an individual signs a rental agreement and refuses to leave after the rental agreement ends.
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Massey said this type of coverage is not widely available, and many insurance policies come with a “property trust exclusion.” This means that if someone breaks into your home and destroys your property, your insurance company will be compensated. It is not intended to cover these costs, he explained.
Adequate insurance coverage is specific to those who rent on a short-term and medium-term basis.
“A little over 10 years ago, our ownership team set out to create an insurance policy designed for the modern real estate investor,” Massey told FOX News Digital.
Squatter coverage emerged during the coronavirus pandemic when vacations were widely suspended and homeowners were allowed to stay in rental units for longer periods of time.
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“Due to the coronavirus pandemic, short-term rentals are more or less shut down across the country,” Massey said. “While no one is actually traveling, the intrastate travel movement is starting to move away from the metros and into short-term rentals in more remote areas. These long-term residents are 30, 45-year-olds. , and in some cases these people will stay in these facilities for 90 days.
Massey said homeowners who have switched from short-term rentals to long-term contracts have similar concerns.
“What if they don’t leave?”
“We immediately answered that question by leveraging squatter protection to create new coverage that has never been done before, anywhere,” Massey said. .
Proper Insurance cover is aimed at those who rent out property on a short-term and medium-term basis.
Trespass protection, at an additional cost, is available when a landlord signs a rental agreement, the rental agreement ends, and the person subsequently refuses to leave the property.
“It was set up to give people on long-term stays more flexibility and peace of mind,” Massey explained.
The coronavirus pandemic has also created “a new industry called mid-term rentals,” Massey told Fox News Digital.
“So we do short-term, long-term, and now medium-term rentals, primarily for traveling nurses…predominantly medical professionals, but these homeowners are “We see this as an opportunity to put these people into housing. “They are their property, but in some states, if they stay for more than 29 days, they become squatters,” Massey said. “We can provide an additional layer of protection should a trespass situation arise.”
Original article source: What is landlord insurance? How reporting affects the squatting situation
