Landlord Insurance

Landlord Insurance Info

Landlord insurance is designed to protect a property owner from loss and damage inherent in the utilization of a property (or properties) for tenant rental. The property can include not just the building that houses the rental units but also the land it sits upon, certain other structures such as garages, sheds, etc., and also any furniture that is provided for tenants. This policy is designed specifically for those who own property that is leased or rented out to others. Usually, good landlord insurance is utilized by those who have invested in homes and apartments with the intention of renting them out to the public.

Landlord insurance helps protect the insured from natural disasters such as severe weather, fires, flooding or earthquakes (usually earthquake insurance is supplemental). This coverage can vary region to region, so it’s paramount that one acquires coverage for those elements most relevant to where the rental property is situated. For example, tornado coverage is suited best for those doing business in the Midwest, whereas earthquake coverage would be most appropriate in a state like California. The property owner is best served by specifying what items, other than the main building, should be included in the coverage.

There are always optional coverage packages that can be added for additional purchase. There is “contents insurance” that covers the contents and furnishings within the property. Rent guarantee coverage compensates for any losses of rent if the property becomes uninhabitable due to damage from some covered event. Accidental insurance helps compensate for the cost of damage from an unforeseen accident. This can also include vandalism and even terrorist acts. Liability insurance is what protects the landowner from injuries incurred by those on the property. It can also cover the expense of any legal fees.

To allocate the best financial protection for rental properties, it is vital to fully provide coverage for the actual value of your property. To achieve this one should have the property assessed to arrive at an accurate level of coverage that reflects the value. Basically, the reason for having Landlord insurance is for the protection of property, to help mitigate any potential added expenses should damage occur, and to avoid any unnecessary out-of-pocket expenditure. When determining what to add to your policy coverage, it is smart to expect the unexpected.