Being a landlord can be a sound investment if you have reliable and reputable tenants. In order to fully protect yourself from various types of loss, you will need a good landlord insurance policy. Landlord policies are necessary to protect you from any damages caused by your tenant or their guests. With property and liability coverage, you will be able to protect yourself if an accident occurs. Even if you have impeccable tenants that always pay on time, you should still have some degree of protection.
Property Protection
The property protection portion of your landlord policy will cover the structure and other dwellings on your property. It will also cover any personal possessions that are necessary for maintaining or caring for the property. This includes lawn mowers, snowblowers, and any other lawn care equipment. This type of insurance covers any damages that the property receives either by your tenants or by natural perils like high winds or other types of storms.
Liability Protection
One of the biggest worries a landlord has is liability risk. If your tenant has a guest over to visit and the guest has an accident, you will be responsible for the damages if the accident occurs on the part of the property you manage. If the accident occurs in the apartment or in another area where your tenant is responsible, they may be liable for the claim if their guest decides to file it. Having liability coverage is in your best interest to ensure you are fully protected.
Additional Types of Coverage
As a landlord, you have to be prepared for any type of peril. Optional coverage is available for perils like burglary, vandalism, building code issues, and making renovations to upgrade your rental units. While these types of coverage may seem unnecessary, having them in place will save you from paying out large amounts of money if even one of these perils should ever occur.
Perils That Aren’t Covered
Your landlord coverage is beneficial when it comes to covering the more common perils. There are a few perils that won’t be covered. If you share a property with a tenant, like a duplex, you may not be covered. Landlord policies are normally only for properties where the owner lives in another location. Other perils that won’t be covered are breakdowns of appliances and other systems like the plumbing, the electrical, or the HVAC system. Yearly maintenance checks can help to eliminate untimely events like breakdowns or malfunctions.
Landlord insurance is a necessary part of doing business. Knowing what perils are covered and how much coverage you need will help you effectively manage your rental properties and mitigate your overall risks. While it’s essential to cover your own property, it’s also important to encourage your tenants to purchase renter’s insurance. If both of you have the appropriate amount of coverage, you will be protected against the most unexpected events. If you want more information on landlord insurance, contact our agents at Scautub Agency today. We will be able to help you protect your investment and ensure your future success.