This type of coverage is designed to protect a residential property from a myriad of losses that may occur as a consequence of natural events or due to the actions of a tenant or visitors to his or her rental home. The usual policy will cover all major structural components of a property such as the foundation, HV/AC, electrical and plumbing, doors, windows, roofs and more. Additionally, exterior structures such as sheds, garages, fences, gates or walkways can be safeguarded with this type of insurance plan.
Who it Helps
Landlord insurance is specifically designed for those who own residential properties and also rent out to tenants. This insurance protection is intended to ONLY protect the landlord’s interests. Covered rental properties can include an owner’s condominium, a typical apartment, townhome, single-family home, and more. All these properties can be placed under the solid protection of good landlord insurance.
How It Works
Landlord insurance is not too different from other insurance coverage types in that the policyholder is obligated to pay a monthly premium and responsible for any deductible prior to the coverage being activated after a claim is made. All this has a hand in determining the total annual policy expense for the landlord. Claims may be filed to receive a compensation so as to fully repair any structural damage or to replace damaged items like appliances and plumbing or electrical and detached structures such as garages or sheds. The landlord’s personal belongings that are also shared with his/her tenants are also covered.
Landlord insurance is offered to help in providing financial protection against such perils as a fire that is accidentally set or even one due to arson. This protection can be utilized to rebuild a property that has, for example, completely burned down or is simply in need of repair for any and all damaged parts of the structure.
The Plus in Protection
The most a policyholder can obtain in benefits is directly related to the market value of the covered property at the time of the loss-causing event. This kind of coverage can also compensate for property damage as a consequence of weather-related events such as severe thunderstorms, tornadoes, hurricanes and snowstorms. With this policy protection, vandalism and other purposeful acts of destruction can also be covered under good landlord insurance plans.
Furthermore, one benefits in obtaining good insurance for landlords due to the peace of mind that’s inherent in knowing, for example, that compensation can be granted for lost income if you need to evict a tenant and the space is vacant for some revenue-losing amount of time. Renters can sometimes be moved out of a property that becomes uninhabitable due to some kind of a disaster or accident, here a landlord can file a claim and receive payments that are equal to the sum that would have been collected from tenants had the destructive event not happened. Should a tenant damage a rental home or apartment, this type of plan can compensate the owner for repair costs, thus avoiding out-of-pocket expenditure.