A Landlord Needs Landlord Insurance
Landlord insurance is a smart investment for anyone who owns rental property. It provides financial protection for a number of mishaps that could occur. Without coverage, the landlord runs the risk of financial ruin. Insurance provides financial help for unexpected expenses that could cost a large amount of money.
A person who owns and rents residential real estate has the right to purchase landlord insurance. Tenants must occupy the property in order for the landlord to have the option of buying the insurance. If the property is empty and has never had tenants, then the landlord cannot qualify for landlord insurance.
The Benefits Outweigh the Expense
The landlord pays a monthly premium for the insurance. In most cases, the cost of the insurance is worth the coverage. There are usually options about how the landlord can pay. For example, a common term for an apartment or house lease is one year. A landlord might pay the full insurance balance at once to cover everything with a single payment.
Types of Coverage
Property occupied by tenants is at risk of being damaged. Accidents happen, and some tenants don’t care much about the property they rent. Therefore, personal possessions of a landlord are fully covered under this type of insurance. Detachable items such as appliances and lighting fixtures are covered as personal property as well.
Dwelling protection pays for structural repairs or replacements due to fire, weather damage or other incidents. Theft and vandalism are covered under a full insurance package. A landlord in a high-crime area will probably pay higher rates than one in a low-crime area.
Landlord insurance is basically beneficial to anyone who acts as a landlord. If you rent property, then you need to protect yourself. There are a number of things that can go wrong. From liability lawsuits to fires – there are several incidents that can cause you legal headaches. With insurance, you have a financial safety net for when things go wrong. Some policies even have coverage that will replace rent lost if the rental property becomes temporarily unlivable.