What is Landlord Insurance?
This is an insurance coverage designed for property owners renting out apartments, residential homes, or condos. Being a landlord, you require protection from financial loss that can be caused by damages to a rental property because of a break-in, fire, severe weather, etc. Insurance can also help in covering the loss of income if the rental units have become inhabitable as a result of circumstances that are beyond your control.
Types of coverage
Depending on your insurer and the options chosen, a policy can include these kinds of insurance:
Property damage – this will cover damages to your personal property and buildings due to storm damage, fire, vandalism, theft, and tenant damage. The plan will cover replacement costs for the entire rental property when loss has occurred.
Liability – this coverage will protect you against lawsuits and liability claims. If a tenant, trespasser or visitor is injured while on your property, you can find yourself entangled in a legal mess. This plan will cover the costs that incur such as funeral costs, medical payments, settlement costs, and legal fees. You will also get coverage in case you are deemed liable for destroying someone’s property.
Loss of income – if you have lost income because your units are inhabitable as a result of fire or storm, you will get compensated.
The cost of this insurance will vary depending on certain factors such as:
The geographical location including any known risks particular in the area
The structure’s size
Number of rental units
Condition and age of the property
If you let smokers rent in your property
If you have a swimming pool in the complex
If your electrical wiring has been done up to current code
The amount and type of coverage you are buying
If your complex has gated access
If you have installed fire sprinklers in your buildings
If you have burglar alarms installed
Take up a landlord insurance coverage to keep your property secure and avoid financial burden whenever the covered incidences occur.