What is Landlord Insurance?
This insurance provides coverage on properties that are being rented out by the property owner. Being a landlord requires that you protect yourself from financial losses, and you can do that easily by purchasing a landlord policy. This insurance can provide protection from losses like:
• Damage caused by fire, nature, break-ins, and other causes
• Loss of income coverage in case your properties ever become uninhabitable (provided circumstances are beyond your control)
• Protection from potential lawsuits and claims against you or your properties
In addition to the above coverage, landlord policies also offer optional additions to your coverage. Rent guarantee allows you to ensure that if a tenant bails, you’ll still get your rent money. There is also natural disaster and employer liability insurance if you have employees. Contents insurance is a good addition to your insurance policy, as it protects any of your personal furnishings, such as appliances or carpets, in the properties that you own.
Why Should I Buy Landlord Insurance?
There are many benefits to investing in an insurance policy to protect you and your assets as a landlord. First, you have the peace of mind that you have financial security despite what happens to or in your properties. You will also be viewed as a better landlord by tenants and the real estate community. Your reputation is what is going to rent your properties, after all. Contents coverage, specifically, is an excellent addition to furnished units or protecting the carpets that you install. A tenant’s insurance won’t cover your personal property, just as your landlord policy won’t cover theirs. It’s every man for himself.
Ultimately, it just makes good business sense to invest in an insurance policy for landlords. The benefits and protection that you get far outweigh the costs, and you might be surprised at how affordable these policies can be.