Being a landlord is not always easy, as you have a lot of issues to deal with that other property owners do not have to worry about. One issue that you don't want to overlook is insurance. Landlords tend to have insurance needs that are more extensive than that of the average homeowner. Here are important points regarding insurance that all landlords need to consider.
Policy
As stated above, a typical homeowners policy will not be sufficient to cover all of your insurance requirements as a landlord. Of course, you will need the same protections as homeowners who do not rent out their properties, such as protection from fires and storm damage, but you also need coverage for situations and circumstances that other property owners do not have to be concerned with. Always make certain that any policy you purchase is tailored specifically to landlords and their unique issues.
Specifics
Your landlord's insurance policy should address certain problems that often occur when a property is rented out. One of the most important is protection against the loss of rental income. When your property is damaged by a natural disaster, for example, your insurance will cover the cost to repair the damage. But, obviously, you will not have tenants living in the space while it's being repaired, so what about the loss of rent that you will incur while waiting for the home to become habitable again? This is where loss of rental income coverage kicks in. It will reimburse you for the rent while repairs are being made so that you do not have to suffer the large financial setback of losing a tenant's monthly rent.
Another issue related to loss of rental income occurs when a property has been repaired and the tenant moves back in. You might have some expenses when this happens, depending on the terms of the lease. If you are responsible for some of the costs, you will naturally want them covered by your policy.
Laws and Ordinances
In some cases, you might need to make expensive renovations to your property due to local ordinances or changes in the local building codes that focus on rental properties. Some landlord insurance policies give you this type of coverage, so ask your insurer whether this is included in the policy.
Clearly, getting the right type of insurance coverage is a critical part of becoming a successful landlord. To learn more, contact your local insurance agent.
Share1 May 2019
Ten years ago, I married my best friend in a beautiful, intimate ceremony. My husband and I have been nearly inseparable and we’ve enjoyed this special time in our lives where it has been just the two of us. However, we’re finally ready to have a baby. Because I only work part-time, my husband is the primary financial provider in the family. If something ever happened to him, I wouldn’t be able to instantly support myself and a child. Because my husband worries about an uncertain future, he is considering purchasing a larger life insurance policy. On this blog, I hope you will discover the best types of life insurance policies for young parents to invest in. Enjoy!
