The Ins and Outs of Landlord Insurance
Introduction
This type of coverage can fully protect a property owner from damages that are a result of a myriad of natural events or man-caused actions. This kind of policy ensures all major structural components such as doors, windows, roofs, plumbing and electrical systems, foundations, and more are protected. Additionally, exterior construction such as fences, garages, sheds, gates and walkways can also be protected under good landlord insurance.
Who Benefits
Landlord insurance is designed specifically for those who own residential property that is leased or rented by tenants. Instead of protecting the renters, this protection is engineered to safeguard the interest of the landlord. Apartments, condominiums, townhouses, single-family homes and attached structures can all be the type of real estate that is insured under this kind of a plan.
How it Works
Insurance for landlords requires the property owner to pay monthly premiums and, most of the time, a deductible as well, prior to receiving a payout for covered losses. These two factors go a long way in determining the final annual costs of coverage that’s exclusively designed for a property owner who rents to tenants. A claim may be filed to receive compensation for the repair of structural damage and detached possessions such as appliances, sheds and other costly belongings that are owned by the landlord but used by tenants.
The Different Types of Coverage
Designed to protect against accidental fire and even arson, good insurance for landlords can be employed to completely rebuild a property that has been destroyed or just to repair it. The maximum amount of compensation that can be obtained will normally approach the market value of the real estate at the time of damage or destruction. This type of insurance also compensates for property damage due to weather-related incidents such as tornadoes, thunderstorms, hurricanes and snowstorms. And this protection can help in dealing with vandalism and other deliberate acts of destruction.
The Benefits
A landlord who has this coverage will enjoy peace of mind in knowing that pay back for lost income if tenants are evicted can be made available. Similarly, renters might be forced out of an uninhabitable property as a result of disasters and accidents. In these cases, a landlord can file a claim and obtain funds equivalent to the sum that would have been collected during the normal rental period. If tenants damage a home or apartment, the owner doesn’t have to worry about out-of-pocket repair costs.