Landlord insurance is an insurance policy, particularly tailored for landlords to protect them against the common risks that are related to renting investment property. It ensures the landlord of protection against calamities or disasters that might come across, through compensations offered by insurance companies. One can never underestimate the importance of it, it is a must have and should have insurance for all who have rented their properties.
These compensations vary depending on the purchased policy and its coverage. Cautioned landlords who have safeguarding cameras, security alarms and other monitoring devices will usually be offered low premium insurance and will sufficiently be compensated should such an event take place.
Since, the coverage limit for a landlord insurance is more when compared to homeowners insurance, the landlord can claim a compensation if any damage is caused to the rented property by the tenants.
While, natural calamity, disaster and structural damage continue to be a threat, the payment of rent too is uncertain. You can never be so sure about your tenants – whether they will pay on time, pay the complete amount, leave without notice or leave without paying the rent. While such situations cannot be completely avoided, their effects can be reduced to a good amount by simply purchasing appropriate insurance policy.
Another valid reason that can damage your finances is lower markets and difficulty in finding tenants. Such impacts of a financial hit can be reduced with landlord insurance. There are policies with coverage options that can be sought if a building remains unoccupied for more than seven days, in case your tenants depart without notice or cease paying rent and stop you from entering into the property.
You can never be too careful with your insurance policy. It is better to check and revise your required coverage before settling for a quote. There are certain key needs that must be included in your policy coverage checklist, depending on the area where your house is located.
- Natural disaster like storm, lightning strike, flood, earthquake and fire
- Civil unrest and riots
Another checklist can be based on the requirements that a building/house/flat demands protection for.
- Pipes and cables
- Fixed appliances
- Plumbing system
- Gas connection and pipeline
- Exterior blinds
- Any external structures
The coverage can also be extended for expensive items that, in the event of damage, will prove to be a financial loss or impact the loss by adding to expenses.
- Carpet and curtains
- Furniture and furnishings
- Household goods
- Internal blinds
- Floor coverings and glass work
When your insurance covers every expense and protects you from every possible damage, you can rest at your home while the policy take care of everything else.