Why You Need Landlord Home Insurance
Homeowner’s insurance is vital for landlords. As a landlord, you understand the value of your investment and your responsibility to protect it. When you rent out your property to others, you are putting your home at risk. You are exposing it to all sorts of risks including theft, fire and floods. Protecting your investment should be number one on your mind.
As with every other homeowner’s insurance policy, landlord home insurance also covers many of the same basic things that your standard home insurance does. But landlords also encounter unique challenges that ordinary homeowners do not experience. For instance, they may not be familiar with many of the terms and conditions of their rental property. They might not know that some of the risks they have to pay for are excluded from standard homeowners insurance policies. That is where an expert landlord home insurance broker can be of help.
As a landlord, you might consider taking out additional renters in your rental properties. This can give you a better return on your money. However, you must remember to check your coverage as a renter. Many homeowners’ insurance policies only cover you for the dwelling and its contents, while renters have to worry about their personal belongings. In this case, you may have to get additional landlord home insurance policies to provide full coverage for your personal belongings.
Landlords can work around the normal restrictions of standard homeowner’s insurance policies. In fact, these can sometimes get better deals than the standard policies. One of these is raising the amount that the policy will pay out in the case of a disaster. You can even take out limited liability policies. This means that if you or any of your family members causes damage to the rental property, only the cost incurred by that person will be covered. With limited liability policies, insurance companies will not pay for your legal costs and other expenses.
When getting a quote for your landlord home insurance, you have to remember to include all the small but important details. For example, if you have pets, make sure that they are also covered by the policy. Some insurance companies require that you sign up required to get such coverage, so make sure that you do sign up. If you do not want to, you can decline this requirement and opt for the quotes without it.
Landlords who take out liability coverage in their regular homeowner insurance policies can also provide coverage for damages to rental property. However, make sure that the limits of liability coverage are high enough to provide sufficient protection. If your rental property is rented out for business purposes, you may want to check with your insurance agents for a general business liability coverage which is usually separate from the rental property coverage.
Your insurance agents will also be able to help you understand the difference between the two different types of insurance coverage. As mentioned above, liability coverage is only provided for personal injuries on the property. On the other hand, comprehensive coverage is meant to cover damage not only to rental properties but also to the building as well. Make sure that you get a good idea of what type of coverage your insurance provider offers before purchasing a policy.
If you are not covered for any damages in the rental property due to unforeseen events like fires, earthquakes or floods, the cost of repair will be paid by the tenant. This means that you will have to find another tenant or dispose of the property. It can be very expensive to simply let the rental property go empty. In cases like these, homeowners insurance is a very important supplement to the regular homeowner’s insurance policy. Landlords can protect their investment and their income at the same time. A landlord home insurance policy can provide the additional coverage required.