If yes, in this article, we’ll expose you to the basic things you must know as a landlord or intending landlord.
The content of this article have been prepared to aid landlords and those that are planning to be one in the near future to see the reasons why they need to get an insurance for their properties against some unforeseen disasters.
So, if you are a landlord or intending landlord, you should consider purchasing landlord’s insurance to protect your property. It is an important step in renting your home, and there are certain things you need to know about purchasing landlord’s insurance.
Why Landlord’s Insurance?
There’re a lot of reasons why landlord’s should get insurance for their properties. The insurance is intended to cover damages or losses in your rental home or properties in the event of a fire, storm, theft or vandalism. Often times, the landlord’s insurance policy not only protects your property itself, but also protects landlords from lawsuits or criminal action from the renters.
What Landlord’s Insurance Should Include Basics
Here’re the basic things which landlord’s insurance should include. Landlord’s insurance should always cover the actual dwelling itself. A replacement cost calculation will determine the actual cost of the rental dwelling, which does not include the land. Be sure to include any features of your rental home, such as screened-in porch or newer carpet that would make your price higher.
Landlord’s insurance should also cover any personal possessions you have in the rental units, such as washer and dryers, tools, refrigerator and other appliances that are not fixed to the house. It should also include coverage for rent payments if the house is deemed unlivable and liability protection for any lawsuits that could occur.
Landlord’s Insurance for Your In-Home Rental
If you are renting a portion of your house, maybe your basement or you live in a duplex, then check with your home insurance company to determine if your homeowners insurance will cover the rental. If the unit has a separate entrance, you may need to have landlord’s insurance for that specific area. It may be possible to write a clause in your rental agreement that requires the tenant to have renters insurance during the time they are living there. It is important to get the right amount of insurance you need to protect your rental unit from damages or liability against a total loss.
Making a Landlord’s Insurance Claim
If a fire or storm damages your rental property, you will need to contact your insurance agency to make the claim under your landlord’s insurance policy. Make sure your tenants are safe, and then you should secure all the damaged areas to prevent further destruction. You will need to provide the insurance agency with a copy of your lease and list of contents you have insured to determine the amount to be reimbursed for your claim.
You may be required to pay a deductible at this time to receive the payment. Most companies will also require you to receive estimates to repair or rebuild the property, so make sure you keep records of any estimates for your insurance company to provide payment.
If your renters notify you of a potential issue, it is important to take care of it as soon as possible. If you don’t act fast, you could be at risk for being sued by your tenants in the event of an accident or injury. Having landlord’s insurance is an important step in your rental income protection.