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Landlord Insurance

A Guide to Landlord Insurance Coverage

This type of insurance protection is tailored to protect owned property that is rented out. It covers property from any damage that may happen due to natural events or from actions of a tenant or his or her visitors. The normal policy will cover all major structural aspects of a property such as the foundation, HV/AC, electrical and plumbing, doors, windows, roofs, and more. Included in coverage are often any exterior structures, such as sheds, garages, fences, gates or walkways,

Who It Benefits

Landlord insurance is specifically designed for people who own residential properties and also rent them out to tenants. This insurance protection is meant to only protect the landlord’s interests. Rental properties can include a house, apartment, condo unit, townhome, a room in a single-family home, and more. All can be covered by good landlord insurance.

How does it Work?

Landlord insurance is not too different from other insurance types in that the policyholder pays a monthly premium and must pay a predetermined deductible prior to compensation being received. Level of coverage, what is covered and deductible amounts all play an important role in determining the total annual policy costs for the landlord. A claim may be filed to receive compensation to fully repair any structural damage and to replace damaged items like appliances and plumbing or electrical and detached structures such as garages or sheds. Any of a landlord’s personal items that are also used by tenants can also be protected.
Landlord insurance helps by providing financial protection against such events as an accidentally set fire or even arson. This coverage can used to rebuild a property that has, for instance, completely burned down or to simply repair damaged structural components.

The Benefits

The most a policyholder can receive in benefits is directly related to the market value of the covered property at the time of its destruction or damage. This type of coverage can also compensate for property damage as a result of weather-related events like severe thunderstorms, tornadoes, hurricanes and snowstorms. With this policy protection, vandalism and other purposeful acts of destruction can also be dealt with by a proper landlord insurance plan.
Good insurance for landlords can provide priceless peace of mind that comes in the knowing, for instance, that you any lost income from evicting a tenant can be repaid. When renters are moved out of a property that is uninhabitable due to some disaster or accident, a landlord may file a claim and receive payment that is equal to the rent that would have been collected had the destructive event never happened. If a tenant damages a rental home or apartment, this policy can pay the owner for repair expenses, thus avoiding out-of-pocket expenditure. Find out more by contacting an insurance professional today.