A policy for landlord insurance covers damage to a landlord’s rental property in the event of fire, storm, vandalism, theft or some other covered damage. This insurance will not cover any of the building’s tenants however. They would need to buy their own renters’ insurance to protect their personal belongings either inside or outside of the building’s property.
Those who are in the business of renting property to others are prime candidates for this kind of insurance coverage. Whether the landlord offers condos, homes, or apartments for rent, landlord insurance is what the owner most likely needs. An individual who lives in their own home but also rents out a room for, say, a couple of weeks a year, is most likely not in need of such a policy. For the occasional and out of ordinary quick rental, a typical homeowner’s insurance policy is most likely sufficient. Talk to your insurance agent for more information.
Landlord insurance can cover a wide variety of incidents and it is essential that one reads the policy in order to fully comprehend the all the coverage options. These kinds of policies can often pay a tenant should he or she be injured on the property due to landlord negligence. An example would be if a tenant falls and breaks a limb due to a faulty stairway that the landlord never got around to repairing. In this sort of situation, the tenant can legally require that the landlord pay his or her medical bills. The policy pays for these damages and also can pay for tenant induced damages or those from a natural disaster as well.
Property Damage is the part of the policy that pays for repair or replacement to the main property structures and other buildings also within the property line, like garages, carports, garden sheds or fencing. It also can cover the costs of repair or replacement for any appliances damaged that are attached to the home, like AC or water heating systems. This kind of coverage will also provide compensation for the rebuilding of a destroyed home.
Liability Coverage is what helps pay for any legal fees or damages associated with a tenant or visitor being hurt on the property due to landlord negligence. The policy limits are generally higher to ensure coverage for a larger amount of people living on the premises. Any individual who owns a building that has 20 or more tenants is at a much higher risk for damages than a normal residential homeowner would be.
Loss of Income coverage helps to reimburse the landlord if any rent is lost due to a building being uninhabitable as a result of covered damages.
There are several other options available within these kind of policies so be sure to enquire about all options with your insurance provider professional.
Copyright Woodbridge Insurance Services 2016