What is Landlord Insurance?
When leasing a residential unit, a landlord is responsible for interior and exterior maintenance. An insurance for landlords provides financial protection against hefty unexpected expenses that involve repairs, remodeling and restoration.
Who it is For
A person who owns a property that’s leased to tenants can purchase landlord insurance. This type of plan is suitable for people who hold a title to a home but live elsewhere. Apartments, condominiums, vacation cottages and single-family homes may be insured with this sort of package.
How it Works
In order to buy an insurance plan for a leased property, the landlord must present the proper documentation of ownership to the insurance agency. Additionally, the residential unit must meet local standards that are established by housing authorities. Some of these organizations require landlords to have insurance in order to legally collect rent money. A monthly premium is paid in order to guarantee compensation when a claim is filed and verified by appraisers, inspectors and other professionals working on behalf of an insurance company.
Different Types of Coverage in Existence
Dwelling protection covers damage to fixed parts of a property such as exterior walls, floors, foundation, windows and roof. Detachable property protection provides coverage on sheds, poolhouses, garages, gazebos, barns and other similar structures that aren’t part of a home. With a liability policy in effect, a landlord doesn’t bear the costs of paying for medical expenses of individuals who have gotten injured on the insured property. Additionally, a liability plan is helpful in covering legal expenses that involve other incidents besides personal injuries like slip-and-fall.
A landlord’s expected income can be abruptly cut off when tenants leave a leased property. The cause for leaving may be related to accidents such as fire and gas pipe explosions. Similarly, renters can get evicted for disobeying the lease terms. An insurance for landlords provides compensation for lost income that was supposed to be collected through a specified lease term. While being away from their properties, landlords also have the peace of mind of getting money to make essential repairs due to weather or human-related situations.