Purchasing landlord insurance is something every landlord should do before they rent out a property. Unfortunately, those who are new to being a landlord may skip this important purchase and leave themselves vulnerable. With this guide, new landlords will learn five important facts they should know about landlord insurance coverage.
Does Every Landlord Need Insurance?
Purchasing landlord insurance from Roger Butler Insurance is highly important. Every landlord should consider purchasing insurance coverage, no matter the size of their property or its value. This insurance coverage offers vast protection that can end up saving landlords thousands of dollars in liability costs.
Five Things Every Landlord Should Know About Insurance Coverage
When a person is considering renting out a property, they need to be aware of their liability. It is important to purchase the right landlord insurance to ensure they are covered appropriately. The following offers information on five important things a landlord needs to know about purchasing landlord insurance.
1. Landlords must purchase landlord insurance and not renter's insurance. Renter's insurance will not cover a landlord. It is important landlords get help from an insurance agent to choose the right coverage.
2. Landlord insurance covers physical damage done to the property. These policies also offer liability coverage. It is important a landlord purchases the highest level of coverage they can afford.
3. It is important landlords understand what is covered by landlord insurance. These policies cover financial losses that occur because of property damage or due to liability claims. Landlords can purchase additional types of coverage, such as flood and rent loss coverage.
4. Landlords also need to know about umbrella policies. This type of policy is separate from the regular landlord insurance policy. An umbrella policy is important if a landlord has a net worth that is larger than the coverage offered by the landlord policy.
5. Finally, landlords also need to know what they can expect to pay each month for coverage. The average cost for landlords is around $144 a month, but this can vary greatly depending on the state, property value, and coverage level.
How to Decide on the Coverage Level
A landlord will need landlord insurance for each rental property they own. The amount of coverage a landlord will need is dependant on many factors. It is wise for a person to sit down with an insurance agent and go over their needs. An experienced insurance agent will help landlords better understand their coverage needs so they can be sure they purchase the right landlord insurance policy.
What About the Tenant's Property?
It is important landlords and renters understand that landlord insurance does not cover the property of the tenant. Tenants will need to purchase their own renter's insurance coverage. Many landlords require their tenants to carry this insurance as a part of the lease agreement.
Purchasing Landlord Insurance Offers Peace of Mind
Landlords must know the importance of purchasing landlord insurance for their rental properties. Without coverage, a landlord could find themselves in a financial nightmare because they do not have coverage for damages that have occurred to their properties. Having this coverage offers great peace of mind and allows a landlord to feel much less stress.
Those who do not have this coverage should consider purchasing it right away. Working with an insurance agent will help landlords to understand their coverage needs and ensure they are purchasing any additional coverage that should extend their current landlord policy.
Post a Comment