How some insurance companies have created a different type of coverage dedicated to squatters

Landlord insurance generally does not cover the costs incurred in the event of a squatter. Property Insurance, which provides short-term rental insurance, has created a different type of coverage out of the COVID pandemic, specifically aimed at protecting property owners in the event that the tenant refuses to leave the property when their lease is up.

When someone decides to convert one of their properties into a rental property, they need insurance other than homeowners insurance.

Landlord insurance typically covers things like property damage, loss of rental income if something happens to the building that renders it uninhabitable and liability coverage, according to Investopedia.

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Additional common coverage options include flood insurance, emergency coverage, guaranteed income insurance and additional construction costs.

One type of coverage that doesn't often fall under the umbrella of landlord insurance is squatter coverage.

Squatter situations can cause huge costs to fall on the shoulders of property owners.

“One issue with squatting, in particular, is that squatters come with property damage,” Nick Massey, director of sales, Proper Insurance told Fox News Digital on the phone.

Proper squatter's insurance coverage covers legal expenses and monetary losses that may arise from the squatter, as well as potential property damage, according to Massey.

Squatter protection provided by Proper Insurance is used in cases where someone signs a lease and then refuses to move out when the lease is up. (Stock)

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This type of coverage is not widely available, as many policies come with a “property exclusion,” Massey said, meaning that if someone breaks into the home and destroys the property, the insurance company will walk away. he will not face those costs, he explained.

Appropriate insurance coverage is different for short- and medium-term renters.

“A little over 10 years ago, our ownership team set out to create insurance for the modern real estate investor,” Massey told Fox News Digital.

Squatter coverage came into effect during the COVID-19 crisis, when vacations were widely suspended, and landlords allowed extended stays in their rental properties.

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“Fast forward to the COVID pandemic, temporary employment is closing across the country,” Massey said. “Nobody's really leaving, but we're starting to see a migration of people from other countries off the highways to short-term rentals, kind of far from these long-term residences, and these are always 30-, 45-, 60-, sometimes day terms -90 of these people live in these buildings.”

Those homeowners who are moving from short-term rentals to long-term plans have expressed similar concerns, Massey said.

“What if they didn't go?”

“We quickly responded to that question by creating new coverage that has never been done before, anywhere, with our squatter protection,” Massey said.

The provision of suitable insurance is aimed at those who rent properties in the short and medium term. (Stock)

Squatter protection, which comes at an additional cost, can be used in those cases where the tenant signs a lease, the lease comes to an end, and the person refuses to leave the property.

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“[It was created] allowing more flexibility and peace of mind for these long-term residents,” explained Massey.

Out of the COVID pandemic has also emerged “a new industry called middle employment,” Massey told Fox News Digital.

“So we have short-term, long-term, and now we have a medium-term rental, which is mainly aimed at traveling nurses … especially the medical sector, but these landlords take that as an opportunity to house these people in the area. their property, but they stay for a long time. In many states you become a squatter if you are there for 29 days or more, depending on the state. “We are able to provide an extra layer of protection in the event of a squatting situation.”