All you need to know about Landlord Insurance
Monday, September 11, 2017, 6:00 AM | Leave Comment
Owning rental properties is a business, even if you own just a single unit. You have rental income, and you have expenses, and the fallout from that is your profit. You can raise rents to increase your income, and you can manage expenses to keep costs down.
You have control over a number of things. Landlord’s insurance covers certain things you don’t have control over.
You can have above market rents, the best tenants and be the best operator. But if there is a fire, flood, explosion or vandalism, your business could be wiped out, as these things are completely out of your control.
A landlord insurance policy will usually cover these types of unexpected happenings and provides you with the option of controlling the uncontrollable.
You will easily come across several well-known and reliable companies that will offer you cheap landlord insurance quote in all the cities around the world.
Let’s have a look at some of the things that get covered in a landlord insurance.
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Property damage
Property damage coverage commonly refers to the coverage of physical loss because of sudden, accidental and direct events. It is also known as landlord insurance, landlord protection, dwelling protection, etc., but are usually referred to as dwelling policies.
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Liability insurance
Liability insurance covers situations when a tenant or visitor is injured due to the landlord’s negligence, a maintenance issue or owner’s failure to keep the property safe and in working order. Normally, tenants or visitors injure themselves on the property and believes the landlord is responsible for the same.
The coverage is to protect you from financial loss in the situations where a tenant or visitor brings up a lawsuit seeking reimbursement of medical bills, legal fees, etc. Typical events that may trigger this are slips, falls, animal bites and also when a tenant is the victim of a crime, normally because of poor lighting or security.
The options normally include listing what liability you want to be covered. For example, if there is a swimming pool on your property, you may want coverage specifically for accidents that could take place around that.
Experts recommend having a significant amount of liability coverage per rental as a sufficient coverage. However, this does depend on the specifics of your property.
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Landlord protective coverage
Landlord protective coverage includes equipment breakdowns, for example, boilers and furnaces. Sometimes they are not covered by the protection policies as they are not considered as sudden, accidental or direct events.
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Lost rental income
When you have a covered loss, a loss of property that is previously covered by your policy, you may also suffer from lost rental income, especially when a tenant has to vacate the property while it is under repair. If you decide to add this option, you would be compensated for lost rental income as well.
Vacancies because of evictions or turnovers are not considered a covered loss and hence, lost rental income in those cases would not be covered.
This was your complete guide on landlord insurance. Hope you find this article informative and helpful.
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