Comprehensive insurance policies provide landlords with coverage for both rental homes and apartment buildings. These insurance packages cover the property itself, various structures on the grounds, and any items the landlord owns within the rental. Parking areas, garages, and appliances often factor into these policies as well. Landlord insurance provides peace of mind for any owner of an investment property. In some cases, local regulations may also mandate an insurance policy.
Reviewing Coverage Options
Landlords have several insurance options they may wish to consider. Liability insurance is the most common option that protects landlords against potential lawsuits from tenants, should an accident or problem occur. Many policies also include Fair Rental Value coverage, which provides the insurance holder with the amount of the monthly rent if for any reason the property becomes inhabitable. Additionally, some policies include inflation protection, which safeguards against rising prices for repairs and maintenance fees by raising the coverage amount incrementally each year.
Examining Coverage Benefits
Landlord insurance proves invaluable in the event of an accident or damage in a rental property. For example, fires, floods, and other natural disasters are often covered by insurance policies. Repairs to the property and lost rent may be covered up to the policy amount. Some landlords also opt for multi-property policies, which cover multiple buildings in the landlord’s possession. Opting for a single policy allows landlords to easily address the needs of each of their properties.
While insurance for landlords does cover many of the problems with the building itself, tenants need to obtain their own insurance for possessions within their apartment. The landlord’s policy will protect the property owner against any claims from the tenant, however. Additionally, damages to the structure or integrity of the rental are covered. This makes landlord policies an ideal option for an investment property owner who needs a viable solution for safeguarding their livelihood.