What is Landlord Insurance?
When a home or apartment is leased to tenants, the landlord can buy insurance that covers expenses related to repairs. Additionally, a leased property has to be insured with liability coverage in order to deal with lawsuits brought forward by guests who might have gotten injured due to reasons that are not tied to tenants.
Who it is For
A personal who owns a residential property may become a landlord by leasing it to others. Once the home or apartment is occupied by renters, it can be insured by insurance for landlords. In order to purchase this form of insurance, a landlord would have to present legal proof of ownership such as a title.
How it Works
A landlord cannot continuously keep an eye on his or her own rental property. Therefore, there is some risk of damage that may result from unruly behavior of tenants or the actions of other guests and people. This type of insurance protects a leased unit from damage that would require major repairs and other replacements of parts. Fixed and detached structures are fully covered against man-made or natural damage. A landlord is advised to file a claim as soon as possible to receive maximum funds for any property repairs or cleanups.
Different Types of Coverage in Existence
The foundation and roof of a home are some of the most important structural components that are protected under an insurance policy for landlords. Other permanent structures such as pool houses and gazebos would also qualify for this insurance plan. Of course, the interior of a leased home is insured against damage such as cracks and holes in walls and ceilings. Water-related damage from spills of jugs, aquariums and water beds is also covered. Acts of vandalism and arson are also listed under the coverage.
An owner of residential real estate can rely on insurance for landlords if there is failure to collect rent money as expected. Evictions and early evacuations of a home usually result in a loss of anticipated income for landlords, and this insurance offers the appropriate compensation.