It is arguably absurd to go without homeowner’s insurance on what, for most folks, would be the most extreme investment he or she will ever make. The same holds true for a property owner’s rental homes. When one is a landlord, it’s crucial to carry the coverage necessary to pay out for any and all potential financial losses and, perhaps even more importantly, for the possibility of a liability claim.
Good landlord insurance coverage is a specialized kind of financial protection for those who rent out their properties to tenants. It essentially comes in categories of coverage, which are liability and property. Both work in harmony to assist landlords in safeguarding their investments and for even protecting them from lost rental income should the property ever become uninhabitable for whatever covered reason.
Good landlord insurance plans are available for residential rental properties of the following kinds:
• Single-Family Homes
• Duplex
• Triplex
• Quad Properties
• And more
An essential policy will safeguard a landlord from:
• Liability: This is the coverage that financially safeguards the landlord from litigation and liability claims. For instance, if a visitor, (or even a trespasser), is hurt on the property and a lawsuit is filed against the landlord, then this liability protection will compensate for whatever losses may be incurred.
• Property Damage: This coverage protects the building structure itself and any personal property within it. These items would include such things as electronics such as a big screens TV or computers. Appliances like stoves or a refrigerator, etc. It also protects the landlord from such perils and actions as theft, fire and severe weather damages, destruction caused by a tenant, and even downright vandalism.
• Income Loss: This coverage pays out for lost income should the rental home become unlivable as a result of any covered loss.
Keep in mind that a typical landlord policy will not provide financial assistance for such things as building maintenance, the breakdown of requisite equipment or for a tenant’s loss of his or her personal belongings. In most instances, one will not be entitled to the protection of landlord coverage if he or she resides in the home in which, say, just a room is being rented out. (Talk to an insurance professional for more details.)
A homeowner’s insurance plan does not provide coverage for a rental property; however, landlord insurance provides the necessary protection for potential financial losses and liability risks that are derived from natural calamities, theft, vandalism, injuries, and even damages caused by a tenant. This protection can even compensate the landlord for lost rental income due to a covered loss that requires a property to be vacated due to either repair or even replacement.
Know that landlord protection can be a very cost-saving method for protecting what can be a huge investment and to ensure that a property owner will not be personally on the line for out-of-pocket damages that happen to the property. The premiums one pays can even be tax-deductible as a business expense. (Be sure to consult with an appropriate professional to determine whether this holds true under the latest changes in the tax code.)
