Good Landlord Insurance
When a landlord rents out a property to his or her tenants, the typical form of homeowners’ insurance is not applicable. One must instead purchase property insurance that is geared to protect the investment, namely one that earns a recurring dollar profit every month.
This type of insurance coverage is meant to protect a residential property owner from damage that can result from various natural events or man-caused actions. The usual policy will cover all major structural components of a property, including the foundation, plumbing, electric, doors, windows, and roof tops among other aspects. Also, any exterior construction such as fences, gates or walkways could also come be covered with this type of insurance plan.
Landlord insurance is meant for those who own residential properties rented out to tenants. Rather than offering insurance protection for the renters, this protects the landlord’s interests. Whether the rental properties are apartments, condos, townhomes, or single-family homes, they all can come under the protection of a landlord insurance policy.
Landlord insurance is similar to other insurance policies in that the monthly premium payments and deductibles are all aspects to the coverage. All this will determine the final annual policy cost for the property owner. When needed, a claim can be filed with the insurance provider to obtain compensation for the repair structural damage or for the replacement of any damaged and covered detached items such as appliances, sheds and other valuable personal items that are landlord-owned but used by tenants.
Landlord insurance is designed to assist the landlord by providing financial protection against such perils as accidentally set fires or even those caused by arson. This insurance can be used to wholly rebuild a property that is completed destroyed or to repair damaged parts of the rental property.
The most a policyholder can obtain is directly related to the market value of the rental property that is covered. This type of coverage can also compensate for property damage as a result of weather-related events such as thunderstorms, tornadoes, hurricanes and blizzards. With the protection of this kind of coverage, vandalism and other purposeful or wanton acts of destruction will also be covered.
A big plus in purchasing good landlord insurance is the enjoyment of the invaluable peace of mind that comes in the knowing, for example, that you are covered for lost income if you need to evict a tenant. Renters are also sometimes removed from a property rendered unlivable due to disasters and accidents. In these cases, a landlord can file a claim and receive compensation that is equal to the amount that would have been collected from tenants had the event not happened. Should tenants damage a rental home or unit, having this protection means the landlord doesn’t have to concern him or herself with out-of-pocket costs for repairs. Landlord insurance is a good deal and maybe a vital one for many landlords.