Landlord insurance is a type of property insurance that protects landlords against abusive tenants. This type of insurance is required when it comes to investment properties. Typically, you pay a higher premium for landlord insurance compared to a homeowner’s policy. You need to know the exact coverage of your landlord insurance. Your landlord property insurance should include the following basic components.
Landlord Insurance Deductible
You need your landlord insurance deductible to cover costs out of your pocket before your landlord insurance policy covers them. Typically, this should range from $1000 to $2500. However, once you exceed this amount, that is only the time that your insurance policy will cover the additional costs. The rule is that the higher your deductible amount, the lower the premium that you have to pay.
Property or Dwelling Coverage
Property coverage takes care of the physical structure of your rental property as well as all the permanent systems that it has. This provides coverage for the entire building, including the air conditioning, plumbing, and heating systems. Many landlord policies will also cover wind, lightning, fire, or snow damage. However, earthquake and theft may require extra coverage.
Personal Property and Liability Coverage
Personal property coverage provides insurance for any personal property that you have in your rental unit. Personal property includes anything from rugs and carpets to drapes and furniture. If you have high-end appliances in your property, then you need to consider adding this to your landlord insurance. Also, liability coverage is for physical injuries that happen within your rental property, especially if a guest sues you for damages.
Rental Income Protection
Rental income protection will cover losses from any peril that will make your rental property uninhabitable. Your landlord policy should include this. If your building gets struck by lightning and leaves three units without power as well as some serious water damage, then you can use the rental income protection to pay your normal rent while you take care of the repairs. However, your policy will not pay for the relocation of your tenants.
Some Final Words
Acts of God such as tsunamis, earthquakes, floods may or may not be covered by your landlord’s insurance policy. The most important thing is to check. If your rental property is located near an area when an act of God may most likely happen, check your coverage with your insurer.
At Mauser & Tobin Co., Inc., we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (516) 747-0171 or Click Here to request a free quote.