The Landlord’s Intro to Landlord Package Policy
When you rent your property as a form of income, you do not qualify for traditional homeowner’s insurance. Anyone who has tenants can benefit from having property insurance specifically written to protect rental property. Landlord insurance is not legally required, but it is a protective barrier that protects the investment property and the landlord. If you have one or more rental properties, then consider landlord insurance.
You might think landlord insurance protects the tenants, but that is incorrect. The purpose of the policy is to pay for repairs or to rebuild the property when it is damaged. It will also cover property furnished by the landlord.
Landlord property insurance is purchased for a specific property or building. A landlord can have coverage for one or all rental properties. Much like a homeowner’s policy, the landlord selects the amount of coverage desired. Then it is time to decide on what type of coverage is wanted, and incidents the policy will cover.
1. Property damage pays for repair and replacement of the building and structures if damaged by covered events.
2. Content replaces personal property owned by the landlord.
3. Liability pays if a tenant or their guests are injured and claim the landlord is at fault.
4. Loss of income covers rent if the building becomes unlivable because of damage.
Landlord insurance benefits
The main benefit of landlord insurance is it can save you during an incident that would normally lead to financial disaster. You will save money on repairs, and have a safety net should you find yourself liable for someone’s injuries. Insurance coverage is the best way to protect your assets and finances.