Details About Landlord Insurance
As a rental property owner, you know that renting is a business. You can control the amount of money you charge tenants and also have control over much of your expenses for the property. However, there are some things that you don’t have any direct control over.
This is where Youi Landlord Insurance comes into play. It protects your financial well-being and your business in those rare instances where you don’t have any control. Some of these instances include explosions, fires, floods, and even vandalism. By purchasing landlord insurance, you can take back some control over these situations.
There are typically four main components of any landlord insurance policy. These include property damage, liability insurance, loss of income, and optional coverage. Let’s take a closer look at each one of these components below.
This covers damages from events like fire, vandalism, theft, and storms that happen to the building.
This protects you from lawsuits and claims due to injury or damages to other’s possessions that took place on your property.
Loss Of Income
This covers events such as fires and floods where a house becomes unlivable. The landlord insurance company will pay you for the lost rental income until the structure becomes livable again.
There are many forms of options coverages that you can add-on to your traditional policy. These can vary with the insurance company as well. Some examples include natural disaster insurance, rent guarantee insurance, and contents coverage.
One major question that all new rental owners seem to have is whether their homeowner’s insurance will suffice over landlord insurance. The simple answer is no. Homeowner’s insurance is meant for people who live in their home.
In most cases, any damage claims you submit to your homeowner’s insurance will be denied if they find out you are renting the property. It’s best to be upfront with your homeowner insurance provider and ask what coverages will be employed if you were to rent out your property. It’s better to know now than deal with costly out-of-pocket expenses later.
The last item we are going to talk about is the requirement to have renter’s insurance. You can make it an obligation in your rental contract that your renter get renter’s insurance. This can help you later down the road if damages occur to the tenant’s property. While this requirement may push away some potential renters, it will help save you from an unnecessary financial burden in the future.