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What Every Landlord Should Know About Insurance
Owning property carries a fair amount of risk. The factors that make you, the landlord, the most vulnerable are, damage to property either by tenant or disaster, and lawsuits. Many landlords depend on the income from rental properties to make payments on their current residence so it is important to protect yourself so that you are not without this income.
Here are some facts you should consider when choosing landlord insurance coverage.
Not all policies are equal– This is one of those categories where you get what you pay for. XINSURANCE will consider the type of property you own and customize coverage, premiums, deductibles and financing to suit your specific needs.
Insurance can help you pay for repairs– As a landlord, you should be protected against extensive property damage. Whether damage is deliberate from disgruntled tenants, or due to tenants who don’t take good care of the property, or by fires, floods, earthquakes, violent storms, etc. your property could end up uninhabitable until repairs are made. The right insurance policy can protect you in these situations.
Insurance can protect against lost rent or late rent–When a tenant is evicted or when the property can’t be rented because of damage, you stand to lose significant income. Having an insurance policy in place can prevent you from adding loss of rent to the stresses of managing a property.
Insurance can protect you from theft on the property–An appropriate policy can help pay for items such as appliances or light fixtures that may be stolen.
An Insurance policy can cover you from accidents that occur on the property– If an accident occurs on your property, you may be responsible for medical bills. You need protection from potentially hazardous conditions on the property like loose steps, a shaky handrail, constantly icy walkway, etc.
Landlord insurance will not cover damage or injury due to negligence of the landlord. The landlord must keep the property in good condition.
When you have an appropriate insurance policy in place, you can be compensated for repairs needed for damage to walls, floors, or carpeting as well as providing compensation if the property is unrentable for a time. You can also receive compensation in the event of being sued for physical or punitive damages. Some policies specify the type of tenant situations it will cover–single tenant, family, students, etc. There are different levels of coverage. A comprehensive plan may cover everything from damages to court costs. You may encounter peril policies that only cover the most extreme situations. You will want to talk to an XINSURANCE agent to determine the best coverage and ensure your investment is fully protected.