Insurance for Landlords
Landlords can purchase insurance coverage for their rental properties. This coverage enables the landlord to protect their property – be it a house, apartment, or condo from damage caused by renters. This coverage is also for things like natural disasters, fires and vandalism. Different types of coverage are available, all intended to help landlords protect their investment.
Who Qualifies as a Landlord?
There is some confusion about who is eligible for landlord insurance. Generally, it is for individuals who own a home, apartment or condo, but the property is not their primary residence. Instead, it is used to house other people known as tenants. These people pay rent to live on the property. A landlord can be one person or several joint owners of a property.
How the Insurance Works
The insurance company charges a monthly premium for landlord insurance. As long as these premiums are paid, coverage remains active. The situations covered by the policy depend on what’s included in the policy. If there’s an incident that leads to damage or loss of income, then a claim is made and reimbursement is paid.
Liability is the main concern of many landlords. It’s a main concern because without liability coverage a landlord can lose big if involved in a lawsuit. Liability is important because it protects the landlord when accidental damage is caused on their property to someone else. This coverage helps pay for expenses for which the landlord is liable.
Another type of coverage is for rental loss. If damage occurs and the space becomes unlivable, then that means rent is lost because no one can live there. The lost income can be covered by rental loss coverage.
In most cases, landlords are concerned with protecting their property and their belongings. This includes the rental unit or units, and included appliances such as stoves and refrigerators. The most basic landlord insurance will cover these things. It is the landlord’s responsibility to purchase more detailed coverage if desired.