When landlords have comprehensive insurance coverage, it provides them with coverage for apartment buildings and rental homes. This type of insurance covers the property, structures on the grounds (like sheds and garages), and items within the rental that belong to the landlord. A landlord insurance policy is a must for any owner of an investment property. Some states even have local regulations that mandate landlords have insurance.
There are several options for people who want landlord insurance. Liability insurance is the most popular option, as it provides financial protection to the landlord against potential lawsuits from tenants, should an accident or problem occur. Some policies include Fair Rental Value coverage. This coverage provides the policyholder with the monthly rent if the property becomes inhabitable. Some coverage also includes inflation protection, which considers inflation when figuring the coverage amount. With this type of coverage, the insurance company raises the coverage amount incrementally each year.
Examining Coverage Benefits
Landlord insurance is great protection for anyone who rents property for income. Fires, floods, tornado, and thunderstorm damage are covered by landlord insurance. Property repairs and lost rent might be covered as well. Landlords who opt for multi-property policies receive coverage for multiple buildings in their possession. A combined policy for all the property makes business easier to handle.
Landlord insurance serves the needs of the landlord. Tenants need their own insurance for possessions within their apartment. A landlord insurance policy covers the property owner, not the tenant. Landlord insurance can save a landlord from financial ruin.