Are you the owner of a property for rent, or are planning to own a property for rent? If such is the case, then this article will help you understand what the important aspects of landlord insurance are and some of the most often overlooked coverage policies. The truth of the matter is that if you are in ownership of a rental property, you are in it for the profits and property appreciation, and not because you enjoy dealing with tenants. Rental property expenses can oftentimes be overwhelming, what with the mortgage payments, insurance coverage needed, and unexpected maintenance expenses that are all a part of it. There are a lot of risks involved in rental property, but if you do things right, you will be have a steady source of income for years and years to come.
Landlords have to deal with a lot of risks to their property such as damage caused by tenants, depreciation of their property and asset, and repairs and maintenance expenses that have to be dealt with. The good thing is that a lot of these risks can be contained and mitigated by obtaining the right landlord insurance policy. For a lot of people, the difference between a standard homeowner’s insurance policy and a landlord policy is quite a confusing matter. In both coverage, a lot of the policies are similar but there are also a few things that differentiate the two.
For a lot of landlords, they normally rent out their homes which they have lived in already and with that, they have already purchased insurance policies for it which is one reason they do not understand the need to get a separate insurance policy for landlords. Landlord insurance gives you ample coverage in the event of a claim, and this is one of the reasons why it is important to get a separate insurance policy. Claims can be denied by your insurance company if you don’t change your policy when you start to rent out your property, as you did not inform them properly of the change in status of the property.
One important coverage that your landlord policy will give you is liability protection. This is very important when tenants are the cause of damages to your property or other properties surrounding your own. Most landlord insurance policies will provide protection ranging from $100,000 to $1,000,000. It is better to obtain a policy with a higher coverage rather than a lower one as it will only cost you a bit more dollars every year.
Loss of rental income is another thing that you want your policy to cover you for. The rental fees that tenants pay to their landlords is normally what is used to pay of the mortgage due on these rental properties. In the event of damage to the property that renders it unlivable, policy coverage can reimburse you for the income you would have earned while your property was being repaired.
Learn About The Author: Brian Humerick is an avid coffee drinker and passionate blogger. He enjoys keeping up on the latest industry news, writing, and spending time with his dog. Visit the following resource for more info: landlords insurance needs You can find more articles on the author’s profile page.