Why Every Landlord Should Consider Buying Landlord Insurance
The compensation by the insurance company varies depending on the landlord insurance that you purchase. For landlords who have exercised some caution such as installing security systems, it will attract little insurance premiums on their insurance covers. Therefore, in the event of property damage and vandalism, the property owner will be fully compensated. Landlord insurance also covers property owners in case of structural damage to the property. The insurance cover extended by this policy covers more than typical homeowners insurance. Some tenants may damage the property maliciously; hence, the need to have the insurance coverage.
The policy will take care of the actual building, fixtures, and fittings but it will not cover any other assets that you may have on the property. In most cases, it’s hard to determine whether the damage to the building is intentional or not, so it is best to let your insurance provider deal with it. Besides, this cover will also take care of the legal expenses incurred by the landlord in case of any litigation. Landlord insurance will also take care of expenditures caused by repairs done on the property.
The amount of coverage on a property determines the monthly premiums that the landlord has to pay. Most of the insurance providers give discounts to homeowners who choose to pay their premiums annually. Therefore, it means that the owner will be required to pay less on annual premiums compared to monthly premiums. It is important to compare premiums from more than one insurance provider for you to get the best rates in the market. Check out for customer reviews from their websites and other sources as it will guide you when making the important decisions.
The importance of having landlord insurance cannot be overstated. A simple mess on the property can result in extensive damages that are very costly to fix. If you own more than one rental property, then it becomes even more necessary to acquire this insurance policy as you have limited time to check on your property on a daily basis.
However, it is important to remember that landlord insurance policy doesn’t take away the responsibility of keeping your property in a good state through carrying out repairs often. Therefore, it is important to take care of your property by conducting regular checks and maintenance. You need to remember that your insurance provider will only pay for the immediate emergency repairs costs and it is the responsibility of the landlord to replace faulty items such as boilers. When looking out for landlord insurance, it is important to make sure that it covers all possible risks, since you do not want to discover when it is too late that the policy doesn’t cover the damage caused to your property.