Landlord insurance is essential for property owners who rent out their properties. It typically covers property damage, lost rental income, liability protection, and other expenses. However, one area that is often not covered by traditional landlord insurance is squatter situations.
During the COVID-19 pandemic, Proper Insurance introduced a unique type of coverage specifically designed to protect property owners in situations where renters refuse to leave once their lease has ended. This squatter protection coverage includes legal expenses, loss of revenue, and property damage caused by squatters.
Nick Massey, director of sales at Proper Insurance, explained that many insurance policies have exclusions around property damage caused by individuals who were let into a property. Proper Insurance’s coverage fills this gap, providing financial protection for property owners renting out on a short- and mid-term basis.
The COVID-19 pandemic led to the rise of mid-term rentals, catering primarily to traveling nurses and medical professionals who require longer stays. In many states, individuals staying for 29 days or more can be considered squatters if they refuse to leave. Proper Insurance’s squatter protection coverage offers an additional layer of protection for property owners in these situations.
This type of coverage is especially valuable for property owners transitioning from short-term to longer-term rental arrangements. It provides peace of mind and flexibility for homeowners facing the uncertainty of extended stays and potential squatter situations.
Overall, Proper Insurance’s squatter protection coverage offers a unique solution to a common problem faced by property owners in the rental market. As the real estate landscape continues to evolve, having comprehensive insurance coverage tailored to specific needs becomes increasingly important for protecting investments and ensuring financial security in unforeseen circumstances.
