Renters cause massive damage to properties with millions of units affected every year. However, you can protect yourself with landlord insurance, a comprehensive cover product that shields you against most losses. Monthly premiums reduce your liability while providing funds (in some cases) to return properties to their previous specs after vandalism by tenants or fire.
This post explains why you need landlord insurance and what makes it essential. Here’s everything you need to know:
Your Homeowners’ Insurance Doesn’t Cover You
Unfortunately, conventional homeowners’ insurance doesn’t cover rental properties (because of the increased risk of damage). Therefore, you won’t get any protection if you only use your existing policy.
By contrast, bespoke landlord insurance will cover you as it is specifically designed to cater to tenants. If you try to claim on your conventional homeowners’ insurance, you likely won’t get any money.
You Can Get Cover For Loss Of Rent
Another reason to choose landlord insurance is the rent loss coverage available on some policies. Here, insurers pay you if tenants decide (for whatever reason) not to pay you in a particular month. Your income remains consistent, even if the people renting from you refuse to cough up cash.
These arrangements are helpful because they enable you to continue paying the mortgage (if you have one), keeping your credit score solid. Furthermore, they take the risk out of being a landlord. Property income becomes more like a fixed-income investment than a volatile one when you include landlord insurance.
You Can Cover Property Damage
Landlord insurance also helps you cover property damage that costs owners billions of dollars annually. Insurers pay out for numerous claims. including:
- Fire
- Flooding
- Vandalism
- Breakdown or damage to specific household features
Check your insurance covers all these categories. Some insurers will limit the scope of payments or include some items in “force majeure” or “acts of God” that shouldn’t be there.
Also, check it covers deliberate damage by tenants. Disgruntled occupants sometimes rip out (or steal) kitchens and bathrooms, flood properties, or cover carpets in paint.
You Can Protect Yourself Against Liability
Perhaps the biggest reason for choosing landlord insurance, however, is the protection it offers against liability claims (which can sometimes range into the millions of dollars). Insurers will often protect you against being sued by tenants or visitors who injure themselves while on your property.
Check the range of situations covered. You want coverage for when occupants:
- Trip over loose carpet
- Burn themselves on hot appliances
- Slip on the bathroom floor
- Trip over the threshold by the front door
- Electrocute themselves on damaged appliances
If someone makes a claim against you and wins, the insurer will pay the compensation and legal fees. You won’t be out of pocket.
So there you have it: compelling reasons why you need landlord insurance.
Contact us for the best rates on landlord insurance!
As independent brokers, we shop the market to find you the best rates on quality landlord insurance designed to meet your needs! So call us today at (610) 775-3848 or contact us online to start saving.
