Why landlords need adequate insurance.
Being a landlord is an exciting prospect. However, renting out property is never going to be a risk-free activity. That is why it is so important to ensure you have landlord insurance when you rent out a property such as a home or a condo.
What is landlords insurance?
Landlords insurance is an insurance policy that is designed to cover the property owner from financial losses connected with rental properties. The policy covers the building and has an option of insuring any contents that belong to the landlord inside. In essence, landlords insurance protects your property and financial investments.
What is usually covered with landlord insurance?
- Buildings – You may already have building insurance and feel that this is enough cover. However, building insurance, while required by all homeowners, is not specifically tailored to deal with other issues that arise from renting a property.
- Loss of rent – One of the biggest potential hits for a landlord is loss of rent. Fortunately, a good landlord policy will help when a property is difficult to rent out and if the tenants have defaulted on rent.
- Tenant caused issues such as intentional damage to property, theft of owner property
- Liability claims such as wrongful eviction or tenant injury from premises.
- Contents – If you’re renting out a high-spec home with brand new furniture and appliances, you should consider protecting them from damage by taking out a landlord policy with contents coverage. If you’re not renting a fully or part-furniture place, you can decline coverage but advise your tenants to take out cover for their own belongings.
- Usually requires the tenant to have reciprocal coverage – This means that the tenant is required to have renters coverage. This protects you as a landlord from covering liability issues directly caused by the tenant, such as dog bites, kitchen fires, and other situations.
Remember that your homeowners insurance policy may not cover all claims if the policy holder is not residing in the home. Ensure that you have reliable landlord insurance to protect your property and pocket. Contact the team Lou Aggetta Insurance Services in Pleasant Hill to get started on your tailored policy.