Landlord insurance is here to safeguard your investment, whether your property is owner occupied or otherwise. This specially designed variety of insurance is made for landlords and is quite different from property owner’s insurance. This is in particular due to the fact that most property owner’s insurance policies do not cover owner-occupied rentals.
Monetary losses are covered by landlord insurance in the following areas:
1. The building structure
2. Furnishings, appliances, flooring, etc., that are damaged by the tenant occupant
3. Flooding and fire damage
4. If tenants or their guests are injured, this insurance handles medical liability claims
5. Litigation legal fees should a tenant sue
6. Theft and vandalism losses
7. Buildings and smaller structures on the property, like garages, decks, and sheds
Some policies offer even more comprehensive coverage that assists in the recovery of rental income should tenants be removed from the premises due to non-payment or other reasons. This extra coverage ensures you are compensated for monthly rental income losses and from losses associated with the repair of damages. This coverage is invaluable if you have to evict tenants or recover funds if the tenants move out after a period of non-payment of rent. This coverage is especially paramount if you derive your main source of income from renting.
Though most income from renting usually covers the normal costs associated with property rental, insurance is here in the event that a landlord is faced with unexpected expenses from natural disasters, theft, vandalism, medical liability, or, of course, the flaky tenant. There is one example that is particularly important to consider: Should tenants be engaged in illegal activities on the premises, such as drug dealing or processing, a landlord can be helped with liability issues with added coverage. This is certainly directed toward absentee landlords who live far away from their rentals and are infrequently able to inspect their rental properties.
As a landlord, acquiring such specific insurance will safeguard your investment, your income, and your hard-earned savings.