Landlord insurance is a policy that protects the landlord from making monetary losses. The policyholder, in this case, is a landlord who owns rental premises. The policy provides cover for the rental building. In some cases, the policy can also cover the property inside the building in addition to the building. This insurance, however, does not cover the tenant’s property that is in the rental building. The cover can thou benefit the tenant if their property is destroyed through ways in which the landlord is held responsible.
Who requires the cover?
This insurance policy is for landlords. It covers the landlord from unprecedented damages. The damages can be caused by fire, lightning, explosion, malicious damage, theft and many other unpredictable causes. The causes vary from one policy to another and are also dependent on the insurance firm. Landlord insurance is however different from landlord emergency cover.
How does it work?
A landlord who takes this cover can make an insurance claim if his/her property is damaged. The landlord is supposed to report to the cover provider in case of damage. The cover provider assesses the damage. If the cause is asserted to be valid, payment is made to the landlord. The amount of payment is dependent on the degree of damage incurred.
Types of covers
There are several types of policies. They vary from one company to the other. The common insurance policies include:
1. Contents insurance
This policy provides cover for the landlord’s belongings that are within the rental premise. Such contents include water tanks and water pipes. It does not, however, protect the tenant’s property.
2. Rent Guarantee insurance
This is a cover that prevents the landlord from being at a financial risk when tenants have difficulties in paying rent. It is an important cover especially if the landlord uses the rent to pay for the mortgage loan used in building the rentals.
3. Liability insurance
This is a policy that protects the landlord from the risk that he/she can be held liable. For instance, a tenant can be injured while climbing the apartment’s staircase. If the staircase is the cause of the injury, the landlord is held liable. This cover protects the landlord from such a scenario
The primary benefit of this insurance is that it acts as security to the landlord in case unprecedented damage occurs. The landlord is also financially covered if tenants default in rent payment.
Exploring the Benefits of Landlord Insurance
If you are planning to purchase or already own a building you wish to rent out to people, good landlord insurance is essential for most. Similar to other products offered by insurance companies, this coverage gives one great peace of mind in knowing he or she is covered should any loss-inducing events occur.
Good insurance for landlords is designed to protect individuals who own rentals and to protect them from a myriad of claims for which they can be vulnerable. This often will include someone becoming hurt on the property, a fire that takes out the building resulting in huge financial loss and more. It is protection that one obtains and keeps in effect by paying premiums and, when claims are filed, paying the agreed deductible, like other forms of insurance products.
Who Can Benefit?
This kind of coverage is tailor-made for landlords. People who rent out single family homes, rooms, apartments or condos can greatly benefit from this kind of insurance coverage. It can protect property owners from a wide variety of events, perils and actions that can occur at any time.
How Does It Work?
Good landlord insurance protects landlords should something loss-inducing occur on the property, such as a theft, vandalism and more. Policies also offer protections like financial protection for fires, flooding and so on. There is even coverage out there that can replace lost income from tenants should your building be rendered uninhabitable due to some covered issue.
There are big benefits in carrying this type of insurance. Above and beyond the many aforementioned coverage components, having insurance for landlords can also be a great marketing tool. Potential tenants can feel more comfortable in knowing there are such in-built protections for their rental unit.
The other plus is the peace of mind in knowing that you, as a landlord, are protected should something go wrong. A property is no small investment, properly protecting it with quality landlord insurance coverage is almost a given.