Landlord Insurance Policies
If you are an owner of property that is rented to others, you certainly are in need of a specialized form of property insurance that will ensure the protection of your assets. Since the owner seldom lives on the premises of his or her property, rentals always tend to be at a greater risk of loss. Pertinent information will educate you on what these kinds of policies cover, who is best-served in buying this type of insurance, and what are the different kinds of coverage available to you, the landlord, in order to make an educated purchase.
This kind of property insurance will cover the structure(s) on the property from covered events such as fire, wind, and vandalism. This coverage also provides landlords with liability protection should a party be injured on the property and then sues him or her. It is very much a necessity to purchase landlord property insurance, (as opposed to a normal property policy), in order to be protected from claims that are excluded from standard coverage.
Again, this type of insurance is specifically geared for properties that are income-producing; it is quite a separate entity from homeowners insurance. The loss risk is determined to be far greater in this case because, for obvious reasons, most tenants are not nearly as concerned with the care of a property as would be a landlord.
The following are the types generally available:
- Business Property Coverage usually covers the buildings on property against damage caused by fire, lightning, an explosion, or severe weather events. The Landlord Liability coverage is for personal coverage against litigation for damage or injury.
- Loss of Rent coverage is available for a time in which tenants can no longer live in and pay for the rental due to some covered loss.
- A rental property can generate a nice and steady flow of income. For many it is the sole source of income. Therefore, it is logical to protect your source of income by obtaining the right kind of insurance. For a relatively modest amount of money paid each year, you can acquire peace of mind knowing that you are fully protected from unexpected and unwelcome circumstances.