Landlords insurance is almost the same thing as homeowners insurance with the most significant difference being that damage to personal property is not covered. Here is everything that you need to know when it comes to this type of insurance.
Basic Property Damage Is Covered
This type of insurance protects them in the event a property they are renting suffers basic damage. The damage covered can stem from high wind, lightning and even fire. Anyone who rents properties that live in an area where hurricanes are common should inquire as to whether or not their insurance covers damage done by hurricanes.
Lawsuit Fees Are Covered
When a landlord is sued following an incident within a property they are renting out, the insurance covers the medical expenses of anyone who has been injured on the property. It also covers the cost of them going to court to face the charges against them. When anything happens on the property that is in violation of the contract between themselves and the tenant the insurance covers those court costs as well. In a case where the court finds that the one renting is at fault, the insurance will cover any fine they have to pay as long as that fine does not exceed the dollar value of the insurance policy.
Insurance Is Broad
This type of insurance plan actually encompasses several different kinds of insurance. The insurance that one carries is more effective when it is tailored the individual needs of that specific person. Various types of insurance that fall under this insurance are building, content and rent guarantee. Building insurance is something that mortgage lenders requires that provides the most basic level of insurance coverage possible. If a property is destroyed building insurance pays for the cost of having it rebuilt. The amount of the insurance policy must reflect the entire cost of rebuilding a destroyed property. Those who rent out already furnished houses are better off purchasing content insurance rather than passing on it. It covers the value of every piece of furniture in the house and pays to have any furniture replaced that becomes broken or is destroyed.
Rent guarantee insurance is often purchased by those who rent out properties to tenants. This insurance pays out at any time that the tenants fail to pay the monthly rent. It pays for the mortgage payments that have to be made on the rental property. Rent guarantee insurance also covers the cost of having their tenants evicted. This type of insurance should always include all legal expenses associated with a tenants failure to pay their rent and access to helplines landlords can turn to if they have a legal question pertaining to the rental property.
These are the most important things to know about landlords insurance. One who has all the right coverage will have the peace of mind of knowing that they will be able to survive financially even if they face tenant problems.