The Basics About Landlord Insurance
Landlord’s insurance is created to protect the property value of a rental property. The property itself can include the land, the building being rented and any furniture included in the rental agreement. This policy is made specifically for people who own property they lease or rent to others. Typically, landlord’s insurance applies to people who invest in homes for the purpose of renting them out to others.
Standard Policy Coverage
Landlord’s insurance will generally cover natural disasters such as damage caused by severe storms, fire, flood or earthquakes. This coverage usually varies by region so it’s important to get coverage for the elements where the property is located. Tornado coverage would be better in the Midwest than earthquake coverage. The property owner would need to specify if items other than the house and grounds were to be included in the policy.
Additional Insurance Packages
In addition to the standard policy, there are other optional packages which could be added for extra coverage. Contents insurance protects the contents or furnishings inside the property. Rent guarantee insurance will cover the loss of rent should the property become uninhabitable due to the damage incurred. Accidental insurance will help cover the cost of damage due to an unforeseen accident, which could include acts of terrorism. Liability insurance would protect against injuries incurred by anyone on the property as well as covering the cost of any legal fees.
The Importance of Having Complete Coverage
To provide the best financial protection for a rental property, it is important to cover the value of the investment. It is helpful to have the property assessed to get adequate coverage for its worth. The purpose of having the Landlord insurance is to protect the value of the property, while avoiding additional expenses in the event any damage occurs. When deciding what to add to a policy it is best to be prepared for the unexpected. Once damage occurs, if it is not covered in the policy, it will be an additional out-of-pocket expense for the Landlord.
Learning about Landlord Insurance
Landlord insurance is specifically for people who own rental property. These types of policies usually include the actual land, the building and appliances provided by the landlord. Landlord insurance is only necessary if the landlord has tenants. If a person has property with the intent of making it rental property, then they don’t need the insurance until they are ready to accept tenants.
Standard coverage provides financial assistance following certain disasters. For example, damage caused by severe storms, fire, or vandalism will be covered. Coverage varies by region so it’s important to get the proper coverage for your area. For example, you might need earthquake coverage if your property is in California.
There are other packages that can be added to standard coverage. A landlord can get content insurance that protects the contents or furnishings inside the building. Possibly the most useful is rent guarantee insurance, which covers the loss of rent should the property become uninhabitable. Then there is accidental insurance, which will cover the cost of damage due to an accident. Also useful is liability insurance for protection against injuries received by anyone on the property as well as the cost of any legal fees from a lawsuit.
The Importance of Coverage
It is important to have financial protection for rental property. You should at least cover the value of the investment. Have the property assessed to get adequate coverage. The purpose of landlord insurance is to protect the property, but also to avoid additional expenses in the event of damage.