Landlord insurance provides numerous beneficial protections for landlords. It covers physical property, dwellings, and landlord equipment on the property.
1. The insurance protects a condo, rental home, or apartment from damage caused by wind, hail, lightning, fire or other losses.
2. The insurance also protects related damages to garages, fences, and storage sheds.
3. The insurance also covers theft or damage of personal equipment such as snow blowers, lawnmowers, and other equipment used to maintain the property.
How the Insurance Works
It is beneficial to landlords in that it excuses them from going through a third-party insurance company used by renters. The most important benefit is that it protects the landlord in a financial way. The insurance can also provide accidental insurance coverage, protection from loss from rent. The insurance also provides liability protection for tenant visitors who might get injured while on the property.
Types of Insurances That Benefit Landlords
There are several types of insurances that can benefit landlords including building insurance, contents insurance, portfolio insurance, home emergency coverage, and rent guaranteed and legal expenses coverage.
Buildings Insurance – Your mortgage lender can provide additional information since this insurance can be compulsory.
Contents Insurance – This is an optional insurance that covers property items used by tenants.
Portfolio Insurance – This insurance covers landlords with five or more properties in a single policy.
Home Emergency – Landlords can use this as an optional add-on to building insurance.
Rent Guarantee and Legal Expense – This is an optional policy that can serve as a standalone policy.
Landlord liability protection can also help pay the medical bills of another person. It is good to have in the event a court determines that stairs or railings were not properly maintained by the landlord. Carrying insurance is simply a good business practice and protects both landlords and tenants. A such, it is a valuable asset to own.