Landlord Insurance: A Smart Investment for Landlords
There are numerous risks associated with being a landlord. Your property could be damaged by tenants or destroyed by a fire or flood. Items that you place on the property, such as appliances, may be damaged or destroyed. As a landlord, you probably have significant amount of financial equity in your rental properties. Landlord insurance helps you minimize the risks for financial loss.
Depending on your policy, landlord insurance may cover the property and the contents inside of your building. You can also get temporary loss of rent benefits should a tenant move out unexpectedly because of property damage. Typically, this coverage is in the amount of the replacement value of the rental property. But the land the building sits on is not included.
As for belongings, you may be able to assign a specific value to the contents. But you will be required to document the exact value of damaged items when filing a claim.
You will also get liability coverage, which is important for a landlord. There is a chance you may be held financially responsible or sued for events that occur on your property. The more tenants you have, the more likely this is to occur.
Being a landlord can be financially profitable, but there are significant risks. Landlord insurance is just one way to protect your assets and your property from peril.