LANDLORD Insurance – Customer-friendlyFlood
If you plan on renting any piece of property in the near future, then you need to take a close look at landlord insurance. While this type of coverage is not a legal requirement in every state, it will be your first line of defense against some of the most common financial and legal issues that landlords have to deal with. Even a basic policy could help you cover a wide variety of expenses ranging from water damage repairs to legal fees.
Do All Landlords Need Insurance?
Rental property is viewed as a business, and that means it won’t be covered by a traditional home insurance policy. From the moment that your tenant signs their lease, only a policy specifically designed for landlords will cover damage, theft, and vandalism. Luckily, landlord insurance is considered a business expense, and that means it should be tax deductible at the end of the fiscal year.
A Look at the Coverage
These types of policies are slightly more complicated than most other forms of insurance. They typically don’t cover your tenant’s private possessions, but they will cover the building itself, the key mechanical systems, and some of the possessions that you have left in the building. That might include items such as light fixtures on the walls, window shutters, and the major appliances.
These policies typically cover the repairs for fire damage, storm damage, and vandalism. If any of the landlord’s personal possessions are stolen from the property, then the policy should cover the cost of replacing those items as well. Before choosing a policy, you will need to take a close look at exactly what you want to have covered in the event of an accident or natural disaster.
Upgrading Your Policy
In addition to basic coverage, many landlords also opt for liability coverage. This type of insurance protects you and your assets against most lawsuits. If the lawsuit goes to trial and you are found guilty, then the policy will help you cover expenses like fines, medical bills, and funeral costs. Landlords should work with an experienced insurance agent to come up with a personalized policy that will meet all of their needs while keeping their premiums at a reasonable level.