An insurance which will take care of your financial risks and interests in case you rent out your property is called landlord insurance. This covers the liability for injuries and any kind of damages of the property.
Importance of landlord insurance
A homeowners insurance does not cover costs and expenses like damages, accidents or natural disasters. However, a landlord’s insurance can save you. Landowners cannot afford to bear all expenses of property and damages. Insurance helps in that matter.
Say you are a homeowner and have insurance. It will only cover the expenses of homes in which you live. The moment you give the house on rent, the insurance policy does not apply to you.
Any large property damage or malfunction of electronic equipment is not the responsibility of the renter. Those expenses are only the tenants responsibility.
So in case of theft, natural damage and property destruction, the tenant is going to bear the cost. That will leave you dry in your pocket.
Coverage Of Landowner’s Insurance
The better and inclusive insurance policy gives three advantages.
Structural Damage
In case the property faces natural disaster, gas malfunction and earthquakes the property damage coverage will bear costs of recovering. Always check and choose the option of replacement cost. This way you will get the complete compensation for the damage.
Rental Income Default Insurance
There can be many mishaps on the property. Such as termites, moths and rats infested areas can cause vacating of the property. The rental insurance will make sure you get the monthly rent covered.
Liability Coverage
Say the tenant gets some kind of medical or legal problem on the property. That happens due to the negligence of the owner. Then the insurance company gets obligated to pay the damage.
Additional Coverage for insured property.
Apart from the landlord insurance there are some common factors that can help you get more money from insurance.
Guaranty of rent.
If the tenant does not pay any amount of rent or Mrs some amount of rent, then the insurance company will pay the landlord.
Flood damage insurance.
Normally the landlord insurance policies do not include any flood related damage insurance. But if your property is in an area where floods are normal then having this insurance option is worthy.
Sudden damage coverage.
If there is an emergency damage at your property such as some malfunctioning of the gas or if the tenant could not find the key to the house and get outside. The cost which comes on you’re travelling to your tenant to resolve the issue will be covered by insurance.
Building Damage
After your property faces some kind of damage, the cost that comes in building it can also be recovered through insurance.