What Is Landlord Insurance?
Landlord insurance is intended to help take most of the financial risk from persons who rent out condos, apartments, and residential homes. Damages can occur to these rental properties due to things such as severe weather, burglary, and fire. With insurance, you can greatly reduce your risk of financial loss due to circumstances that are not under your control.
What Does Landlord Insurance Cover?
There are several different types of coverage that you can get included in your landlord insurance policy. These will vary depending on the insurance company you’re working with and the choices you make. Some examples are listed below so that you can better understand these potential options. Youi Landlord Insurance https://www.youi.com.au/home-
Liability Insurance – This policy is geared towards helping landlords against liability lawsuits and claims. This covers situations such as injuries occurring on your property and instances where you’re found liable for damages, such as a leaky pipe destroying a tenant’s possessions.
Property Damage – This policy covers the replacement costs of your property in the event of damaged or a total loss. Damages can occur from events like fires, storm damage, theft, tenant damage, or vandalism.
Income Loss – In the case your rental property becomes uninhabitable, this policy will reimburse what your rental income would’ve been had your property been available for rent.
These are just a few of the most popular forms of landlord insurance that are offered. There are some optional coverages that can be added on to any of these insurance policies. Some of these include:
- Rent Guarantee Insurance
- Natural Disaster Insurance
- Landlord Contents Insurance
- Employer Liability Insurance
How Does Landlord Insurance Work?
On a basic level, this insurance protects rental owners from damage to their property and any liability claims made against them. Let’s take a look at a few examples so that you can better understand how this type of insurance works.
If there were to be a fire due to a lightning strike that damaged your rental property, insurance would cover the cost of rebuilding. There are maximum coverage limits that are imposed on all types of insurance. At the time of signing the insurance agreement, you should be aware of the maximum coverage, so you know what the insurance company will pay out to fix your damages.
As with almost any type of insurance offered, you will be responsible for a deductible fee. This is an upfront charge that you must pay out in the event of damage before the insurance coverage will kick in to cover the rest.