Landlord Insurance Explained
Landlord insurance is a policy designed for property owners who rent out apartments, residential homes, and condos. If you are a landlord, then you need protection from financial loss. The risk is high for a landlord because damages can occur because of a break-in, fire, severe weather, and more. This type of policy will also help cover the loss of income if the rental units become unlivable because of a mishap.
You can add certain provisions to your policy. However, a standard landlord insurance policy usually includes typical coverage. Property damage covers damage to property and buildings due to storms, fire, vandalism, theft, and tenant damage. Liability protects you during lawsuits and liability claims. When a tenant, trespasser or visitor gets injured on your property, you can find yourself facing a lawsuit. Liability covers the expenses associated with medical care, settlement costs, and legal fees. Loss of income is available as well for when you are unable to rent your property.
The cost of landlord insurance depends upon factors such as the location of the property. Insurance in high crime areas generally costs more. The size of the property, number of rental units, condition and age of the property will be taken into consideration. Other influencing factors include the security on the property, if you have installed fire sprinklers, burglar alarms, and smoke detectors.
If you are a landlord, then landlord insurance is something you should have. It is the best way to protect yourself and your investment from taking a financial hit.