Landlord insurance is a very similar type of insurance to homeowners insurance though they both protect your property landlord insurance protects your rendered property against risk from those who rent them and also protects you in case you lose your rental income.
What is Landlord Insurance Policy?
A landlord insurance policy is a very special type of insurance policy that protect homeowners against some losses they can incur in their renter properties. This policy covers a lot depending on the insurer and you need to check all was covered by the insurance company you are using basically they cover fire, theft, and damages to your renter properties,
What insurance do I need as a landlord?
This basically depends on the company you are using for your insurance policy, the frequency of your renters, and also the length.
Frequently like: The frequent short-term renters: A good example here is Airbnb. Those property owners who rent out their properties for short-term periods will be known as business owners. It should be known that this type of landlord insurance is not covered by the normal homeowner’s insurance but instead covered with a commercial insurance policy that best fits.
Occasional short-term renters: These are other property owners who rent their homes occasionally for short periods. This set of homeowners may not necessarily need to get more insurance if have an existing homeowner insurance policy. The homeowner insurance still covers this set of landlords but definitely, they should contact their insurance company to confirm if the coverage still covers it because some will require additional rider insurance though all still fall under home insurance policy.
Those long-term renters: For Landlords who rent their properties for 6 months and above will need landlord insurance also known as a ‘rental dwelling policy’ and should not be confused with homeowners insurance because landlord insurance or rental dwelling policy is basically for properties that are meant to lease out. It is advisable not to risk your property because landlord insurance cost over 25% more than homeowner insurance, they are not the same and you should get the appropriate policy.
What does landlord insurance not cover?
These are a few things you should put at the back of your mind that your landlord’s insurance did not cover:
- You should know that it did not cover your home once you are leaving with your tenant
- Does not cover any of your belongings that have nothing to do with the maintenance/upkeep of the property
- Maintenance or repair of home appliances
- It did not also cover your tenant’s belongings
What Does Landlord Insurance Cover
Landlord insurance covers not only your dwelling but your other properties like personal and liability properties but you should be aware of some coverage:
Dwelling coverage covered your properties in case of fire damages or any other damage by a covered peril
While basically, some liabilities will fall under tenant responsibilities but if liability is found to be your responsibility liability insurance will cover you financially and legally.
Your other structures like fences, shed, etc are covered by the landlord’s insurance any damages caused include perils.
Any of your personal properties that are used to maintain your rented properties are covered not other properties that have nothing to do with your renter’s properties like tv or such but damaged lawn equipment and appliances included.
5Questions to ask your insurance broker
These are not only applicable to landlord insurance but if you are purchasing any insurance you should speak to a licensed insurance broker regarding that before you purchase it at all. Also, you should consider insurance quotes and shop around to know the best prices and best coverage to fit your property.
Here are some questions you should ask brokers while speaking with one:
- You need to ask if your coverage cover events of terrorist attack
- You also need to know all your necessary deductibles in your policy
- Ask if there are any insurance discounts that may apply to your
- You need to ask if there is any replaceable cost or cash value calculated under the policy you intend to buy
- Also, ask if there are any upgrades/repairs that you can do to reduce the insurance cost
Conclusion
To buy any insurance policy you need to meet the best insurance broker and ask questions. In fact, jot down over 20 questions you will love to ask including those questions we suggest above. Make research and do a lot of what that insurance policy covers and what it does not covers also if it is the best insurance policy for that purpose. Getting quotes and comparing prices will also help you not spend unnecessarily and also know the best company that fits the purpose.
We have given you the best elementary knowledge you need about landlord insurance policies if you have any questions or suggestions kindly leave that in the comment section.
