Are you properly protected?
For many, owning a second home, investment property or vacation rental property is part of the American dream. In 2017, 9.26 million American households owned a second home.¹ Just as your primary home comes with costs, upkeep and liability concerns, the same goes for your rental property. When it comes to rentals, a question of insurance coverage arises. Will your primary homeowners policy still cover your rental, or do you need a separate insurance policy? If so, what type of policy do you need?
Consider the following
It’s important to communicate the details of your rental with your agent to obtain the best insurance plan for your needs. Consider these four main factors when deciding which insurance provides the best coverage for your rental property:
Regardless of what type of policy you select, your tenants’ personal possessions are generally not covered under your policy. They would likely need their own renter’s policy, which should also cover liability for incidents caused by their negligence.
How Nationwide® Private Client responds
You can easily extend the liability and personal property coverages from a Nationwide Private Client primary homeowners policy to your rental property. By adding the right endorsements, you can also extend the coverage to your secondary rental home or a separate structure on your residence property.
Coverage for your personal property kept at a secondary residence is limited under our primary homeowners policy. If you need more coverage, you can add an endorsement to specify an additional amount of coverage for your personal property at your secondary residence.
Have an apartment on the residence premises that you rent regularly? Your primary homeowners policy will provide up to 10% of the dwelling limit of liability for damage to your appliances, carpeting and other household furnishings resulting from a covered loss.
In select states,² Nationwide Private Client offers the option for full coverage on homes and condominiums when they are rented full or part time. With the full-coverage option, base policy coverage applies with no reduction or restriction due to the home or condominium being rented. We also offer a reduced-coverage option which, has lower additional property and personal liability coverages than our base homeowners policies.
The following coverages are included when you rent all or part of your home regardless of which state you live in:
Your homeowners policy may not cover losses incurred while your secondary home is rented to others; you may require a more specialized policy. Whether you own a second home that you lease to long-term tenants, rent your beach cottage when you’re not using it or rent a guest house/casita on your primary residence, you could be liable for injuries to tenants and their visitors or responsible for damage they cause. Consult your agent on which policy is best for you.
Why Nationwide Private Client
Affluent clients’ insurance needs may not be met by most mass-market carriers. Nationwide Private Client is dedicated to helping protect the assets and reputations of our clients. Our highly personalized insurance products, services and concierge-style claims management are thoughtfully designed to meet the distinctive needs of affluent individuals and families. We are committed to providing you a superior experience whenever you need assistance.
Nationwide Private Client offers these added benefits: