Landlord Insurance for Rental Property
Being a landlord presents a problem for some property owners. When you own rental property, how do you protect against mishaps and liability issues? You can’t get homeowners insurance because that doesn’t apply to multiple dwelling buildings. Landlord insurance is the best solution.
Landlord Insurance Explained
Landlord insurance is for people who own properties they rent to tenants as a means of income. In order to receive this type of insurance, the building cannot be the landlord’s main residence.
What the Policies Cover
Comprehensive property coverage is for unexpected or sudden losses due to damage to the property. Liability coverage covers the landlord when he/she is to blame for damage to someone else. Some coverage helps the landlord recover lost income when a property becomes unlivable and the tenants do not pay rent.
How it Works
A landlord pays a monthly premium to keep the insurance policy active. If the landlord is a company with several properties, it might be possible to pay a yearly premium. When an incident occurs, the landlord files a claim for compensation. If the incident is verified by the insurance company, then they will issue compensation to the landlord.
Any landlord should want to have landlord insurance. It’s the only way to have protection from all the mishaps that can happen to a rental property. Tenants may or may not feel compelled to take care of their surroundings. With the proper insurance, a landlord will always have financial help to handle mishaps and disasters.