5 BEST REASONS TO GET LANDLORD INSURANCE
Protect Your Reputation
Plan For The Future
Prevent Financial Ruin
Get Peace of Mind
How Landlord Insurance Protects Your Assets
Do You Have A Landlord Insurance Policy Yet?
With one or more rental units you may still think of yourself simply as a landlord, but is there more to it?
For instance, if you now employ a groundskeeper and a maintenance engineer or handyman to maintain your rental properties or repair property damage, you instantly have more responsibilities. Perhaps you also employ a rental agent to show vacant rental units, collect rents and process leases. Don’t forget the tenants you pay to clean and refurbish rental properties after move outs. They are employees if you have them on your payroll. What does this mean to a landlord like you? Businesses are required by law to provide workers compensation to employees. And this is just one of the insurance policies you should have if your intention is to grow your rental property business.
Being A Landlord Can Be Expensive
It’s likely your rental property, whether single family homes, 3 flats, or a condo complex, is mortgaged. You may be paying your mortgage, taxes, insurance and maintenance out of your rental income. Water damage from floods, fires and other natural disasters can render rental property uninhabitable for months while repair and refurbishment is completed. How will you meet your obligations each month? You risk loss of rental income or even result in foreclosure because you cannot pay the mortgage.
If you already have property owners insurance, it could be a good time to check that your property coverage is still adequate. Your investment properties may need additional coverage.
Do You Have The Right Landlord Insurance?
Also referred to as buy-to-let home insurance, landlord insurance covers the policyholder against property damage to your rental property and also liability coverage for if and when someone is injured in the property. It also covers you as the property owner against lost rental income arising from things that make the home uninhabitable like termites, severe mold, a sinkhole, or a rat infection.
As your landlord business goes from strength to strength, we will continue to provide insurance guidance and support that will give you peace of mind.
How Much Will Landlord Insurance Cost You?
Policies for different properties have different insurance rates because they are not built the same. The landlord insurance rate for the rental property is based on the building cost and quality of materials. You may get discounts for some safety features like security alarms and fire sprinklers. That being said, there are some factors that have an impact on your landlord insurance policy and they include:
The condition of the rental property, for example, normal wear and tear
The number of units the property comprises
The amount of money you pay for the replacement of your rental property
The age of the property
Landlord Insurance Or Homeowner’s Insurance?
Homeowner’s insurance and landlord insurance may sound similar, however the liability protection they offer is different. Landlord insurance features elements of both small business insurance and homeowner’s insurance to help protect the owner of a rental property from monetary losses.
Take a look at the differences.
A landlord insurance policy protects the property owner’s business or investment interest in a property while homeowners insurance protects the owner living in the home.
Rental properties attract higher premiums compared to homes because tenants are less careful in properties they do not own. If you are a property title owner who doesn’t actually reside in the property, it is advisable to purchase landlord insurance
Landlord insurance covers you against lost rental payments while homeowner’s insurance covers mortgage payments you fail to make due to loss of rental property use.
In addition, landlord insurance will cover you if a tenant gets hurt on the property, but homeowners insurance will cover a guest who is hurt in your home.
Landlord insurance doesn’t protect the personal property of renters. However homeowner’s insurance protects your home property and all things contained in it.
Are you unsure which insurance policy will suit your needs best? Contact us.
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