If you’re a landlord and property owner who rents out the property to others, it would be beneficial to have insurance on the property. Landlord insurance is the ideal way to ensure you’re covered in case your property is destroyed or you become involved in litigation. Learn more about this important insurance.
Landlord or property owner insurance is a type of insurance used by landlords who rent out their property to others. It covers the property if it’s destroyed or damaged by covered perils. The insurance covers the actual property or dwelling and does not cover the personal property of the tenants, who would typically purchase their own renters insurance.
A landlord policy may also cover any of the landlord’s personal belongings that may be stored in the property or buildings. As with all insurance policies, this type of insurance also comes with premiums, which are paid monthly, quarterly or annually. There is also a deductible, which is the out-of-pocket amount the landlord must pay before the insurance company pays on the claim.
Landlord insurance typically offers two types of coverage: damage to the physical property and liability. As stated above, the insurance company will pay for damages to the property caused by storm, fire, vandalism, theft and even tenant damage.
When a landlord purchases insurance on the property, they purchase a certain amount, generally what it would cost to replace the property if it were destroyed. That is the maximum amount the insurance company will pay, so it’s important to make sure you have enough coverage.
The liability portion of the insurance covers you as the landlord in case someone is injured on the property and chooses to sue you or receive medical attention. It’s important to know that if you lose the case, the insurance again will only pay as much as the amount of liability insurance you have on the policy.
Being a landlord is a great way to bring in some extra income. However, it could all go away quickly if you suffered a loss and didn’t have this valuable insurance on your property.