The 411 on Landlord Insurance
Landlord insurance enables the building owner to be properly protected from the costs of property damages and various other financial risks. This kind of insurance policy covers the building and often furniture and other items within. A property owner, no matter how careful he or she thinks they’re being, cannot guarantee that no accidents or costly events will happen, such as flooding or an individual being injured on the property. Insurance is a necessity for any owner who administers a residential or commercial building with tenants.
Landlords require good insurance coverage for all kinds of accidents that can happen anytime to single family type homes, condos and apartment buildings. Nature can be the cause of great damage, such as that inflicted by wildfires, severe storms and even tornadoes.
Human-caused damage is just as costly and possible. Fire is the most usual form of destruction in this case. Fires can blow through an apartment building in no time flat and destroy everything within. Fires can be accidentally set by smokers or via items catching fire near a heat source in the unit. There is also the possibility of gas leaks that can lead to explosions or simply sicken those within.
With a good landlord insurance plan, one is also covered for theft, vandalism and even acts of terrorism. No matter if it is a tenant or a trespasser who inflicts damage, this is all protected under the proper policy.
An owner will often benefit greatly from liability coverage for any accident that might occur on the landlord’s property. The most usual type is a slip and fall accident that is the result of some supposed property defect. Anyone who walks into a badly maintained building can easily have an accident (or, at least, claim it as such), but with the proper policy coverage, the landlord can be protected from litigation, frivolous or otherwise.
Landlord Insurance is specifically meant for landlords and not for his or her tenants. The different kinds of policies can cover anything from damage to property caused by tenants to accidents that happen on the property. One kind of policy can covers tenants who might need to find different living arrangements no fault of their own, but generally a tenant should buy his or her own renter’s insurance. Another kind of coverage for landlords helps then should they lose money due to missing or late rent payments.
There is also multi-property insurance that offers coverage for the landlord who owns more than one property. Landlords can greatly benefit from loss-of-income coverage as they can receive compensation for lost rental income should the property become uninhabitable.