What is landlord insurance? It is an insurance policy designed to protect the interests of a landlord in a rental property. This type of insurance works differently than a homeowners insurance policy. It gives specific protection for losses that are unique to landlords.
Landlord policies are for anyone who owns a rental property. Weather you are renting out a single property or are a professional landlord, you should have a landlord policy, or you will find yourself with a serious gap in your insurance coverage.
These policies work by covering everything in a rental property that is part of the landlord’s interest. This includes dwelling protection which covers the building, and any structures attached to it, such as a deck or garage. The insurance also covers any personal contents belonging to the landlord that are on the property. For example, this would provide protection for landlords who rent furnished apartments, and want the value of their furniture replaced if it is damaged or destroyed. The landlord is from damage due to fire, lightning, explosions, earthquakes, storms, flood, theft, and malicious damage.
Many landlord policies also offer fair rental income coverage. This reimburses the landlord for lost rent if his property is uninhabitable due to damage. For example, if a fire ravaged a rental home and the tenants had to move out, this policy feature would cover the landlords loss in rent. This protection usually lasts up to twelve months or until the residence is repaired.
There are different types of coverage which are optional on a landlord policy. Common policy options include accidental damage, malicious damage by a tenant, terrorism, and legal protection. These options can be a great benefit to a landlord because they offer specific protection for losses a landlord might incur.
The benefits of landlord coverage are very important for anyone who owns a rental property. Homeowners policies do not offer lost rental income coverage or an option for covering malicious damage by a tenant. These unique situations require a policy designed for a landlord specifically. All landlords should have this needed protection.