Having property insurance is never a bad idea. It helps protect your investment. And if you’re a landlord who rents out the property to others, it would be beneficial to have insurance. Landlord insurance is the ideal way to make sure your property is covered. It also helps should you become involved in a lawsuit.
Landlord or property owner insurance is coverage for landlords who rent out their property to tenants. It covers the property if it’s destroyed or damaged in certain situations. The insurance covers the actual property or dwelling. It does not cover the personal property of the tenants. They would need to purchase their own renter’s insurance. However, the policy may also cover the landlord’s personal belongings stored on the property.
To keep the insurance active, premiums must be paid monthly, quarterly or annually. There is also a deductible before a claim can be processed.
Landlord insurance covers damage to the property and liability. Damage to the property caused by storm, fire, vandalism, theft, and tenants is generally covered. The amount of coverage is generally for an amount that would replace the property if it were destroyed. That is the maximum amount the insurance company will pay.
Liability covers the landlord in case someone is injured on the property and sues or needs medical attention. If the landlord loses the lawsuit, then insurance will pay as much as the amount of liability available.
Any landlord should have landlord insurance. It’s a smart way to protect property and personal assets.