Reimbursement for Damage to Your Rental Dwelling
With Allstate® Landlords Package Policy, there are two ways covered losses can be settled.
Actual Cash Value may be lower than the cost to repair or replace your damaged rental dwelling. You may be required to purchase an Actual Cash Value policy based on the age and condition of your rental property.
Building Structure Reimbursement typically means your dwelling is covered for more than the actual cash value—up to your policy limits—if you repair or replace the damaged property within the required time period. However, your rental property must meet age and condition requirements to be eligible.
Here's how the Building Structure Reimbursement Provision works:
- A check is given to you for the Actual Cash Value for the damage to the rental property up to the policy limits.
- When you repair or replace the property within the required time period, we then issue a separate check for the remaining amount needed to make the repairs or replacement, up to your policy limits.
Refer to your policy for more detailed information.
How to review what you have. If you have an Allstate Landlords Package Policy, you can review which type of coverage you have by looking at your Policy Declarations. With either coverage, a deductible will apply.
Landlord Insurance Doesn't Cover Everything
Landlord insurance protects a rental property from accidental and sudden losses. However, there are some losses that aren't covered.
Breakdowns in the rental property
Most landlord insurance does not cover basic maintenance repairs. For example, if your water heater cracks, your coverage most likely will not help to replace the water heater. (But it might help pay for the damage to your floors.)
Personal property
The items owned by your tenants, such as their clothing, electronics and other personal possessions, aren't covered under most landlord insurance policies. You may want to recommend that your tenants purchase Allstate® Renters Insurance to cover their belongings in case of a loss.
The items owned by your tenants, such as their clothing, electronics and other personal possessions, aren't covered under most landlord insurance policies. You may want to recommend that your tenants purchase Allstate® Renters Insurance to cover their belongings in case of a loss.
Also, damage due to vandalism caused by a tenant is not typically covered by the Landlords Package Policy, unless you purchase additional Vandalism coverage, and the damage is within the policy limit.
Floods, earthquakes and water backup
Typically, floods, earthquakes and water (sewer) backups are excluded from most landlord insurance.
Flood insurance is a separate policy you can purchase in addition to what is covered in a Landlords Package Policy. Your Allstate Agent can help you purchase a separate policy through the National Flood Insurance Plan (NFIP). Or call 1-800-ALLSTATE.
