LANDLORD Insurance – Customer-friendly
If you own a rental property, such as a single family home, a condo unit or another type of dwelling that you lease to another individual, you may benefit from a landlord insurance policy. This is a special type of policy that is designed to cover the property owner for losses related to the rental property, and it is generally not available to you if you plan to live in the unit. It typically will cover the building, and it may include liability insurance as well as replacement or repair coverage for the building. In some cases, the policy may include personal property coverage for the owner’s contents, but it will not cover the tenant’s belongings. Keep in mind that your real estate lender may require you to purchase this type of coverage and to maintain a policy for the entire time that you have a mortgage loan in place on it. Even when you do not have a mortgage on the property, there is financial benefit associated with having the coverage in place.
With this type of policy, you will file a claim if you have a loss that relates to damage inside or outside of the building. This may include a flood related to plumbing issues, a roof replacement because of a wind storm or some other type of covered event. When you file a claim, you will pay the deductible on your policy. The insurance company will pay the remainder of the expenses that are covered by the landlord insurance policy that you have in place up to the coverage limits. If additional expenses remain, these will be the responsibility of the property owner.
When you purchase this type of policy, you can ask your insurance provider about ways to save money on the premium. One idea is to choose a higher deductible, but you do not want your deductible to be too high and therefore unaffordable to pay when you need to. Another idea is to make changes to the property, such as enhancing the locks on the doors or investing in a new fire alarm system. Each provider has unique credits and discounts available, so inquire with your provider about the discounts available through their company.