The Facts You Need To Know About Landlord Insurance
What Is Landlord Insurance?
Landlord insurance is a type of insurance policy that covers a property owner when they rent out their homes, apartments, or condos to other people. This insurance is meant to protect the property owner from any major financial loss due to severe weather, theft, fire, and other incidents.
It’s important to realize that there are different add-ons for the typical landlord insurance policy. These add-ons can include thing such as loss of income, where you will receive payments from the insurance company in the instance your property becomes uninhabitable to rent.
What Is Covered Under A Landlord Insurance Policy?
There are two main areas of coverage that every base insurance plan comes with. This includes property damage and liability insurance. Let’s take a closer look at each one of these areas below.
Property damage happens when the building is damaged due to vandalism, theft, storms, fire, or even tenants. This policy will also cover the property owner’s personal property in the event of damage, such as furniture in a furnished apartment that they let. In the event of a total loss, the insurance company will pay the replacement cost for the entire rental property.
Liability coverage is more geared towards protecting the property owner from any liability lawsuits. In the case a tenant or visitor to the property becomes injured due to neglect from the property owner, they can take legal action against the property owner.
They can do so to receive compensation for loss of income, funeral costs, legal fees, and medical payments. This coverage also works for covering the loss of personal property for the tenant or visitor in the instance the property owner is liable for the damage.
What Is Loss Of Income Insurance Add-On?
In the event that your rental property becomes uninhabitable, loss of income insurance can help to cover the rental income until the property is fixed or rebuilt to a habitable state. This damage could be due to a storm, fire, or even water damage. This rental reimbursement add-on will ensure the property owner has a stream of income during the time the rental is not able to be rented.
What Are Other Add-Ons For A Landlord Insurance Policy?
There are many different options that a property owner can add-on to their insurance policy to better protect them from financial loss in the future. Some of these include rent guarantee insurance, natural disaster insurance, landlord contents insurance, employer liability insurance, and others. Different insurance companies will offer various options to their basic landlord insurance policy.