Landlord insurance does not typically cover costs incurred in a squatter situation. Proper Insurance has created a unique type of coverage that specifically protects property owners in situations where a renter refuses to leave the property once their lease has ended. This coverage, which was developed in response to the COVID-19 pandemic, is separate from traditional homeowners insurance and covers property damage, lost rental income, liability protection, legal expenses, and loss of revenue that could come from a squatter.
In addition to squatter coverage, typical coverage options for landlords include flood insurance, emergency coverage, guaranteed income insurance, and additional construction expenses. Squatter situations can result in significant expenses for property owners, as squatters may cause property damage. Proper Insurance’s squatter coverage addresses these issues and provides unique protection for property owners renting out on a short- and mid-term basis. Owners who transitioned from short-term rentals to longer-term arrangements during the pandemic found themselves in need of additional protection in case renters refused to leave.
Squatter protection is offered as an additional premium and can be used in situations where a renter refuses to vacate the property after their lease ends. This coverage was developed to provide flexibility and peace of mind for property owners renting out their properties for longer-term stays. The COVID-19 pandemic also gave rise to a new industry known as mid-term rentals, which caters primarily to traveling nurses and medical professionals. Homeowners who provide accommodations for these long-term renters can benefit from squatter protection in case a renter turns into a squatter after staying longer than 29 days in most states.
Nick Massey, director of sales at Proper Insurance, emphasized the importance of having proper coverage to protect against squatters and the associated costs. Many insurance policies have exclusions around property damage caused by squatters, which can leave property owners vulnerable to significant financial losses. Proper Insurance’s coverage was created with the modern property investor in mind, particularly those offering short- and mid-term rentals. By offering unique coverage for squatter situations, Proper Insurance aims to provide property owners with a level of protection that is not widely available in the market.
Self-help eviction methods to remove squatters could lead to legal trouble for homeowners, which is why having the right insurance coverage is essential. Squatter protection from Proper Insurance covers legal expenses, loss of revenue, and property damage caused by squatters, providing property owners with peace of mind in case they encounter this challenging situation. As the rental market continues to evolve, it is important for property owners to stay informed about their insurance options and choose coverage that aligns with their specific needs and circumstances. Proactive measures, such as investing in the right insurance coverage, can help property owners navigate potential challenges and protect their investments.
