Landlord Insurance: Smart Investment for Landlords
Landlord insurance is recommended for anyone who earns money as a landlord. This coverage is for physical property, dwellings, and landlord equipment on the property. Coverage is for any rental property that a landlord rents out to tenants. This includes apartment buildings and condos. You will receive financial reimbursement if wind, hail, lightning, fire or other losses affect the property. Damages to garages, fences, storage sheds, theft and damage to personal equipment is also covered.
Landlords can get this coverage without going through a third-party insurance company used by renters. The coverage is recommended because it guards against so many potential risks. Accidental insurance coverage and protection from loss of rent is an option as well. There is liability protection for visitors who might get injured while on the property.
There are several additional types of insurances that can benefit landlords. There’s building, contents, portfolio, and home emergency insurance. There is also rent guaranteed and legal expenses coverage.
Buildings insurance is often required by a mortgage lender. Contents insurance is optional, and covers property items used by tenants. Portfolio insurance is for landlords with five or more properties under a single policy. And home emergency is an add-on to building insurance.
Rent guarantee and legal expense coverage is optional, and can be a standalone policy.
Liability protection is also important for landlords. The coverage helps pay the medical bills of another person injured on the property. It is good to have in the event a court determines that the landlord was negligent. Landlord insurance is good business practice, and it protects landlords and tenants.