If you are a landlord, you need to make sure that you understand the clauses and intricacies of your landlord insurance policy.
Standard property insurance policies operate under the assumption that the one who owns the policy lives in the property. And while this may not be an issue for the common homeowner/renter, it can cause an issue for landlords. The reason being that landlords do not live in the properties they rent. To make up for this fact, landlords require landlord insurance in order to receive coverage. If landlords file a claim on a rental but the policy is not listed as a landlord policy, the insurer is within their right to deny the claim. Here are a few key things you need to know about your landlord insurance policy.
Just like with homeowners insurance, flood damage is typically not covered under the general policy and must be purchased separately. Most policies cover water damage caused by things like broken pipes or water heaters, but not for weather-related damage.
Other Acts of Nature
Acts of nature include disasters like tornadoes, earthquakes, and hurricanes. Some types of insurance policies may not include all weather phenomena because it may not be relevant in your region. For example, tornado coverage is not required in California, but is necessary in states like Kansas and Oklahoma.
Medical & Legal Coverage
Medical and legal liability coverage can keep you from having to pay out-of-pocket if a tenant or contractor sues you for bodily or property damages.
Do you have the insurance to protect yourself if you are a landlord? These tips should get you started on the right foot when purchasing your landlord insurance policy. To learn more about the policies you should have, contact Lou Aggetta Insurance Services in Pleasant Hill.