Being a landlord is not easy, and you will often be faced with situations that were out of your control. This is why it is so important for those who rent out their properties to be financially protected with an insurance policy. Landlord policies are similar to homeowner’s policies, however, they go further and protect you against risks that can occur in the rental business.
- How does a landlord policy protect me?
A landlord insurance policy usually protects you, your real property, and your personal property used in the rental against events such as fire, lightning, wind, or hail. For example, if your property is damaged by wind, the policy can cover the cost of repairs. Policies can also cover your personal property, such as any tools that were damaged in the event. Furthermore, a landlord policy also offers liability protection, which could shield you from medical and legal payments in case a tenant sues you.
- What else can landlord policies include?
Landlord policies vary, and you can add certain coverages depending on the size of the policy you want. For example, you can purchase coverage that protects against vandalism, or you can purchase coverage to cover any additional costs in case building codes change while making repairs. Some policies even come with coverage to make up for lost income in case your property is uninhabitable for an extended period of time.
- What is not included in a landlord policy?
One common misconception about a landlord policy is that it covers a tenant’s belongings. Landlord policies ONLY cover the property owner’s belongings, and not those of the tenant. Neither do landlord policies offer coverage for equipment breakdowns, and maintenance costs for the equipment will likely have to come out of pocket.