(ThyBlackMan.com) In 2019, having a rental property can be a really great investment that can bring in some extra cash and help your family to succeed. Not everyone can afford to buy their own property and this is why there is such a demand for landlords to invest in properties for rental. Of course, as a landlord, you need to make sure that you are thinking about everything from the cost of the monthly rent to the insurance that covers the property.
In this article, we are going to tell you some of the things that we think you need to know about landlord insurance. Keep reading to find out more about what this kind of policy can cover.
What Is Landlord Insurance?
If you are currently wondering what is landlord insurance then you should know that this kind of policy protects your rental property when you are not living in it. It can be easy to think that your homeowners insurance will cover your rental property but this is not always the case. If you are not going to be living in the property with your tenants then you will likely need a new policy that will protect you and your property.
Landlord insurance can be a complicated topic as some companies will offer more cover than others. This is why you need to make sure that you are always comparing policies and considering the kind of property that you are going to insure. With a better understanding of this kind of policy, you can make the right decision on what is best for you and your family.
What Is Covered?
The great thing about most landlord insurance policies is that they cover a variety of things. This kind of policy is designed for those renting out their property to others and so will cover most issues that you will face as a landlord. One of the most important features of landlord insurance is dwelling coverage which will protect you if you need to rebuild any part of your home. While this is not something which you’ll want to have to think about, it is important to be covered.
You might also want to invest in landlord insurance in order to protect yourself should anything happen to any of your tenants while they are living there. This is also known as liability protection and it can help with any claims that might be made. It is important that you see your landlord role as a business and that you don’t fall into the trap of a claim from a tenant.
Landlord insurance policies can differ depending on the company you purchase them from but you’ll find that most include loss of use cover and property damage cover as well. This means that you can save some money by making a claim against your insurance company if your pipes were to burst of you lose your rental income for some reason.
What Isn’t Covered?
When taking out a landlord insurance policy, it is important that you are reading all of the terms and conditions carefully. Many landlords think that certain things are covered by their policies but this isn’t always the case. One of the things that you need to know isn’t usually covered by your insurance is equipment breakdowns. This is something which you need to be willing to cover if something breaks down and this can be quite expensive. You’ll need to repair any broken washing machines and other equipment within the property or you might have an unhappy tenant.
You should also be aware that your landlord insurance will not cover any damage that happens to the property owned by your tenants. This is where renters insurance comes in handy and this might be something which you should suggest to your tenants.
Don’t Forget About It
If you are planning on investing in a rental property then you should make sure that you know everything that you need to about landlord insurance. If you are able to find out exactly what is covered and what isn’t, you can make sure that you are choosing the right kind of policy.
Landlord insurance can make or break your bank account if something goes wrong and so this is something that is very important. Take out your landlords insurance policy and you’ll be able to put your mind at ease when you are moving in your new tenants.
Staff Writer; Bobby Jones