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What is Landlord Insurance?
For anyone who owns a rental property they know that finding a good tenant is key to a successful income unit. Well that can also be said for having the right insurance in place in case something bad happens which it inevitably will. In this article I will explain what landlord insurance is and what it will cover in the event of a loss.
- Dwelling Property - Also known as building coverage, it covers many types of damage done to your home including hail, wind, and vandalism.
- Personal Property - Usually based on a percentage of the building property, it covers loss or damage to items like clothes, electronics, and furniture.
- Liability - Pays when you are legally liable for someone else's bodily injury or property damage resulting from accidents. This includes costs to resolve claims or defend lawsuits brought against you.
- Medical Payments - Rarely used but on most home policies this will pay for medical expenses for people injured at your residence regardless of liability.
- Additional Living Expenses - When you are forced to live elsewhere while damage is repaired to your home this will pay for additional expenses commonly up to 24 months or a specific coverage limit.
- Loss of Rental Income - This replaces "Additional Living Expenses" and is used when a loss forces your tenants to move out while damage is being repaired. The loss of rental income during this period is covered.
- Landlord Liability - This is similar to liability protection on a homeowner policy but if you don't have landlord policy your insurance carrier could deny your claim as you did not inform them the house was rented to others.
- Water Backup - Water is a homeowner’s worst nightmare especially if you don't have water backup coverage. Most standard policies will not cover a backup from sewer systems so this coverage is vital.
- Identity Theft Protection - Some insurance companies offer this as an additional coverage. This is the fastest growing crime worldwide and you as a landlord need protection. Identity theft protection can cost as little as $8 per month and we partner with a leading organization that compare identity theft protection products.
Make it look like you are home:
It is very easy to find a house that is vacant because you never see the lights come on at night and the lawn is over grown. This is a welcome mat for vandals or theives who look for easy targets. If you visit the property once a week you can cut the grass, collect the mail, and turn on a different light each time. If you can't do this have a friend do it because it will save you a lot of time and money later.