Renting your space out to someone else comes with a lot of risks. You want to know what your landlord insurance is going to cover, especially if it is tenant damage. There are certain circumstances where landlord insurance does cover tenant damage.
This is good news for you as a landlord because you can depend on your insurance when things go wrong. You likely view your rental as an investment, one which you want to keep in good shape.
So let us get into all things related to landlord insurance. Here are the things you absolutely need to know before purchasing landlord insurance:
What is Covered by Landlord Insurance?
A basic landlord insurance plan will cover the basic structures of the space you are renting out. This includes the structure, attached structures, and the landlord’s personal property. Each insurance plan is going to be a little different but these are items you should find in your insurance plan.
If you have a house and some land, a basic plan should cover the house and the structures you put on the land. This can be items such as a shed and fences you put up to protect your property. There are other add-ons that you can add to a basic landlord insurance plan if you need more coverage.
Loss of Rental Income
Landlord insurance is a great option because there is the possibility for you to claim loss of rental income. This is unique to landlord insurance versus commercial insurance. Landlord insurance can save you serious money as a landlord.
What loss of rental income looks like is say your rental property gets damaged. Your landlord insurance covers the financial loss you experience if your property is in repair. This is great for you as a landlord. You do not lose any money and can still have your rental property ready to rent out again without any significant financial loss.
Insurance is specific with what type of damage was done to your rental property. Not all damage is the same or caused by the same thing. You need to know what damage was done and how it was done when filing a claim with your insurance company.
There are different situations in which you can find yourself such as someone accidentally damages something, the tenant accidentally damages something, general wear and tear, and intentional tenant damage.
Landlord insurance covers damage but there may be different ways to file or make a claim. You can receive coverage for it if serious damage happened and it was accidental.
In terms of wear and tear, you are going to have to pay for this as the landlord. This can include major appliances, heating going out, or cabinets not closing. Keeping your rental property up-to-date and well-maintained is going to be the best way to avoid major wear and tear.
In the worst-case scenario, you will have tenants that will purposely damage property. Landlord insurance does cover tenant damage that is done to your property and major structure. If you can document or have some kind of proof of how it was done, the higher your chances of your claim going through insurance.
If you are a homeowner, you are not going to need landlord insurance. You will want to have homeowners insurance if you are living in the house that you own. Landlord insurance is for people who are renting out their properties and are not living in them currently.
Homeowners insurance is a part of the insurance if you purchase a house. It may be with your mortgage expenses if you are buying a house for the first time. This will protect your belongings and property if anything unexpected happens to your home.
Does Landlord Insurance Cover the Cost of Repairs?
It depends on the type of repair and what caused it. There are different types of damage that happen to a rental property. Landlord insurance is not going to cover the general wear and tear of someone living in that space.
What it will cover is damage done to the property if something unexpected does happen to the house. If a really bad weather storm happens and causes damage to the roof or wall, landlord insurance may cover it. File a claim with your insurance and insurance will pay for the costs if approved.
If you are a landlord and want to upgrade the space, insurance will not cover this cost. Upkeep and general maintenance costs will fall on the landlord. Damage that happens from tenants, weather, or break-ins is something that landlord insurance does cover.
Does Landlord Insurance Cover Tenants?
Typically landlord insurance does not cover tenants and their belongings. Secondly, landlord insurance is there to protect and insure the landlord of the property. It will also protect the property that the landlord owns and is renting out.
Landlord insurance is great for the landlord and also benefits the renter. Of course, if the structure has damage, insurance will cover the expenses for the damage caused. This allows for a faster rebuild, allowing the renter to have a place to stay again.
If you are a renter you will want to look at getting renters insurance. This will protect your belongings as a renter. Of course, renters insurance is a great option for you if you have roommates or are living in a rental property for an extended period of time.
You may also live in a state that requires rental insurance. Certain landlords will require you to show proof of renters insurance when living on their property. We recommend getting renters insurance even if you have not before. There are a lot of unknowns when it comes to renting and you want to protect yourself and your belongings.
Finding the Right Kind of Coverage
Time to get landlord insurance? Fill out our online form and see what your estimate is. Make an appointment with us to get your landlord insurance package ready to go.
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