What is it?
This type of insurance protection is designed to safeguard a residential property from damages that may occur due to natural events or some kind of man-caused actions. A good landlord insurance policy can cover all major structural components of the property, like the foundation, HV/AC, electrical and plumbing, doors, windows, roofs, and so on. Also falling under this policy’s protection can be any exterior buildings, such as garages, sheds, fences, gates or walkways.
Landlord insurance is specifically designed to benefit those who own residential properties that are being rented out to people. Rather than offering insurance protection for the renters, this coverage specifically protects the landlord’s assets and bank account. No matter if the rental properties are apartments, condos, townhomes, or single-family homes, they can all be fully protected by good landlord insurance coverage.
How it works
Landlord insurance coverage is similar to other insurance in that one is responsible for monthly premium payments and for the payment of predetermined deductibles, (if one has a claim). The annual policy costs for the rental property owner are determined by several things including the property makeup, its location and the extent and variety of coverage chosen. When appropriate, a claim can be filed to receive compensation so as to repair structural damage, rebuild the structure should it be necessary or replace any detached items like appliances, sheds and other valuable belongings that are landlord-owned but enjoyed by tenants.
Landlord insurance is designed to assist by providing financial protection against such events as fire that is accidentally set or even arson-caused. This insurance can be used to fully rebuild a property that has completely gone up in flames or to simply repair a damaged section of the building.
When it needs to be used
Should a structure be totally destroyed as a result of some covered event, the most a policyholder can expect to receive is directly related to the market value of the property. This type of coverage can also provide payment for property damage that is the result of weather-related events like thunderstorms, tornadoes, hurricanes, and ice and snow storms. With this policy in effect, vandalism and other purposeful acts of destruction are also covered under landlord insurance.
A big benefit in purchasing proper landlord insurance coverage is the attainment of priceless peace of mind. This comes in the knowing, for example, that you can receive compensation for lost income if you need to evict a tenant who has stopped paying rent. This coverage also helps landlords when renters must be moved out of the property due to it being rendered uninhabitable as a result of some disaster or accident. In a case such as this, the landlord can file a claim and receive payment that is equal to the sum that would have been collected from tenants had the destructive event never happened. Should a tenant damage a rental property, this coverage can spare the owner the often budget busting out-of-pocket expenses for repairs. Call an insurance professional today to find out more about how landlord insurance can help keep a property owner financially healthy.