Why You Need Landlord Insurance and How to Get It
Landlords have it tough enough as it is, what with having to manage their properties while also finding new tenants, maintaining their properties, and more.
But let’s not forget that they are also financially responsible if something were to happen on the property; such as fire damage, theft or even accidental damage by the tenant itself.
If you’re thinking about becoming a landlord soon or are already one, you need to consider buying landlord insurance policies. Let’s take a look at why you need these and how to get them below.
What is landlord insurance?
Landlord insurance is a type of commercial property insurance that covers the building, its contents, as well as any liability that you may have.
There are two types of landlord insurance: actual cash value (ACV) coverage or replacement cost coverage. The ACV policy pays for the damage that has happened to the building’s structure, but not its contents.
Replacement cost coverage will cover both the building’s structure and its contents with no depreciation calculation.
As an example, if the damages were $2,000 to the exterior of your building and $3,000 worth of furniture inside your store, an ACV policy would only cover $2,000 because it doesn’t take into account depreciation.
Replacement cost coverage would pay out up to $6,000 in this situation. However, these policies tend to be more expensive than ACV policies.
To make sure you’re getting the best possible rate for your needs, it’s important to compare rates from different companies before signing anything!
Keep in mind that even though landlords don’t often use their insurance, they still need to keep it updated.
This information is written by Annabelle Harrison. I’m a blogger and writer who writes about all things related to residential real estate, including how to find properties for sale and rent.
I’ve been writing about property for over five years now – feel free to reach out with any questions!
What does landlord insurance cover?
Landlord insurance covers a wide range of losses. The most common coverage is for property loss or damage, but there are many other policies that can be purchased separately.
For example, you can purchase liability coverage which covers you in the event that someone is injured while they’re on your property.
Another popular policy is rental income protection, which will cover the cost of monthly mortgage payments if the rental property becomes uninhabitable due to a disaster such as a fire or flood.
There’s also legal expenses coverage, which covers any legal costs incurred as a result of being sued by tenants, guests or others who might have been hurt at the property.
Then there’s alternative living expense coverage, which pays for living expenses when the tenant has to temporarily relocate because their home was destroyed by a disaster such as a flood or fire.
Finally, construction defect liability insurance pays for repairs to homes built with defects, and rental deposit guarantee insures landlords against damages caused by tenants moving out.
What should I do before buying landlord insurance?: Before purchasing a landlord insurance policy it’s important to review your needs so that you don’t buy more than you need (or too little).
Make sure that you understand how much each type of coverage would cost annually and how much it would pay per claim.
How much does landlord insurance cost?
Landlord insurance is a type of home insurance for landlords. The cost varies depending on the size of the property, the age of the building, and other factors.
To find out how much landlord insurance costs in your area, contact your insurer or a local independent agent.
The cost of landlord insurance will depend on several factors, such as the size of the property, location, building age, deductible amount and more.
If you’re not sure about the specifics, give us a call. We can help you get started with an appropriate plan for your needs.
The cost of landlord insurance will depend on several factors, such as the size of the property, location, building age, deductible amount and more.
If you’re not sure about the specifics, give us a call. We can help you get started with an appropriate plan for your needs.
How to get landlord insurance?
Landlords are responsible for any damages that happen on their property, regardless of who caused the damage. The best way to protect your investment is by purchasing a landlord insurance policy.
This insurance covers damages due to theft or vandalism, as well as liability issues caused by renters.
Liability coverage pays you if someone gets injured on the property or sues you because they got hurt there.
If a guest trips over an uneven sidewalk or falls down the stairs, you may be liable for injuries sustained in these cases.
A $2 million dollar limit would cover injuries up to this amount and then reimburse you for paying these bills.
You can also purchase additional liability protection which will help with legal defense costs should something go wrong.
When it comes to hosting events at your rental unit like parties or wedding receptions, you’ll want additional liability protection as well.
Liability coverage protects against accidents occurring at these gatherings and other mishaps like faulty electrical wiring which could cause fire damage to neighboring units.
For more information about getting this type of coverage, please call us today! We have access to many different policies from leading companies such as .
Our agents will take time to get all the details about your business so we can find a plan that works best for you.
We’ll also make sure you have all the information necessary when filling out an application and submitting payment online so that you’re protected from day one.