You may be asking what landlord insurance is and if you need it, so we’ve taken it upon ourselves to dive deeper into the topic for you. To begin, let's take a look at what landlord insurance is.
Landlord insurance is a form of insurance coverage developed for landlords to protect them against the losses that come with renting out their investment properties. Landlord insurance can cover all types of investment properties, including a house, unit, apartment, or townhouse.
Many responsibilities come with being a homeowner. Even investors who want a low level of involvement in their investments have obligations. It's essential to take the necessary steps to secure your property, especially if you are leasing or renting it out. With landlord insurance cover, you have peace of mind that you are covered for all unforeseen eventualities.
What Does Landlord Insurance Cover?
Landlord insurance cover can protect you in the following instances:
Tenancy Cover Tenancy cover as a part of landlord insurance may encompass the following: • Damage by a renter or guest • Liability • Rent default • Loss of rent
Building Cover Structural damage to the building as a result of the following: • Floods • Fires • Storm damage • Vandalism • Vehicle collisions etc
Contents Cover Damage to the interior components of the property, such as the carpet, lighting, curtains, and appliances as a result of: • Fires • Lightning strikes • Storm damage • Floods • Falling trees etc
What Is Not Covered By Landlord Insurance?
Even though the majority of things that result in property damage or a loss of rental income are covered, several things are generally excluded, including:
Wear and tear
If you damage the property
Insect and rodent damage
Damages on unrented areas
Pet-related damage
How Much Does Landlord Insurance Cost?
Insurance rates are affected by several factors, including:
• Property type • Location of the property • Value of the property
• The structural integrity of the property
• The history of your claim
After accounting for all of this, it's nearly impossible to provide an actual cost for insurance. Most insurance companies offer free online quotes to help you get an idea of how much you might need to spend.
Conclusion
We highly landlord insurance cover if you plan to rent out your property and keep it protected. You can't rely on your homeowner's insurance to cover damage that occurs on a property you rent out, since the policy only covers your primary residence.
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I hope all of this info has been helpful and wish you all the best on your property journey. Please don't hesitate to get in touch if you have any questions.
Disclosure: The information contained in this blog is our personal opinion only and is not to be taken as financial advice, as we do not know your financial situation. Please speak with your accountant or any other licensed professional for specific advice based on your own personal circumstances. We will not be held liable for any losses.
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