Landlord insurance is a type of coverage that protects building owners from theft or other damage resulting from fire or floods. If you’re a landlord, it’s not a legal requirement to acquire the insurance, but it can play a vital role in protecting your financial future. Usually, most tenants pay their rent on time and provide necessary basic maintenance for your property. Nonetheless, there are always unprecedented events that may result in damage. In some instances, your mortgage or loan provider may require you to obtain the insurance coverage before you even take on any tenants.
Why Get Coverage
Rental properties represent a great investment. If significant damage were to occur, most people would take a sizeable financial hit. As these properties can vary widely in size and usage, it’s important to get coverage which meets all your needs.
Things to Consider
Your insurer may not ask information about your tenants, but it is important to maintain updated information on the current property occupants. They may also require information on the building’s age, the value of any personal property you have within or on the grounds, the building’s rebuild cost, as well as the details of any claims submitted in the last five years. The insurer may also seek information on the types of locks and alarms in the house and information on the home’s occupants.
Coverage Options and Discounts
Some of the options to consider include loss of rent, legal coverage, inflation, property damage, liability insurance and fair rental value coverage. Additionally, the property owners may be eligible for various discounts, such as multi-policy, new home discount and early renewals, among others. One of our experts can explain all the particulars and help you determine exactly which coverage is best to protect you and your investment property.