The Basics of Landlord Insurance
Landlord insurance allows a building owner to stay covered for property damages and financial losses. This insurance policy covers the building itself along with furniture and other belongings inside. A property owner cannot guarantee that no calamity will happen, such as a flood or accident. Insurance is needed by any owner in charge of looking after a residential or commercial building.
How It Works
Landlords need insurance to cover all types of mishaps that happen to homes, condos and apartment buildings. Nature creates wildfires, thunderstorms and tornadoes that cannot be controlled by humans. A single tornado could wipe out an entire town while a hurricane could cause several feet of flooding.
Humans cause just as much damage, too. Fire is the most common and destructive type of damage they create. Fires are known to soar through an apartment building and consume everything from walls to furniture. These fires are created by people who discard cigarettes carelessly or place heat near flammable items. In addition to fires, there are gas leaks that lead to explosions.
Theft, vandalism and acts of terrorism are covered under insurance plans for landlords. Whether a tenant or a trespasser causes the damage, the event is protected under the right policy.
An owner needs liability against any accident that happens on his or her property. The most common type is a slip and fall that occurs due to property neglect. Anyone who enters a poorly maintained building could easily run into an accident, but with the right policy, the landlord is protected from being sued.
Types of Coverage
Insurance designed for landlords is meant for them and not for the tenants. The different types of policies cover everything from property damages caused by tenants to liability insurance for accidents that occur on the property. One type of policy covers tenants who have to arrange different accommodations, and another type covers landlords who lose money because of late rent payments.
Multi-property insurance provides coverage for the owner of more than one property. Landlords need loss-of-income coverage to receive compensation for income that gets lost if the property becomes unlivable. The income covers any rent payments that do not get collected.