Let us discuss the landlord’s insurance briefly. A landlord’s insurance covers the property damaged due to unforeseen circumstances like theft, fire accident, earthquake, storm and even tenant damage. The insurance covers all the replacement cost of the area that has been damaged.
For example, your property had a fire incident and one particular room has been completely damaged. The insurance will help you in fixing the damaged room of the property. But before you make the claim, make sure you know what all are covered by your insurance including the type of product and the upper limit of the insurance claim. In order to make to get the reimbursement, you will have to pay the deductible amount to your insurer.
If the property has not been rented for a long period of time because of the damage then the insurer will pay you monthly rent till it has been fixed. For example, until the time the room that has been completely ruined in the fire has been fixed, your insurer will pay you monthly rent.
In the cases where the case of damage has been moved to court then the insurance covers the cost of lawsuit, expenses and claims. This also includes the case where the tenant has incurred injuries and has taken you to court.
There are other additional covers that a landlord can opt for like rent guarantee insurance, landlord contents insurance etc. These are added- on insurances and can be customised as per your need.
Why should you opt it?
Guards you against sudden loss of the property.
You can get it reimbursed at the time when the property is getting fixed.
Landlord insurance will compensate more than the regular insurance. It will cover all the loss and damage of a rental property along with the liability claims.
Saves you from the damage done by the tenants.
Factors that define cost of insurance
Size of the property
Location of the property
Number of units
The security system of the property and how advanced it is