What Is Landlord Insurance?

Landlord Insurance

According to research, there are more than 11 million individuals acting as landlords within the United States. Additionally, it is said that 1 new rental enters into the market every 1 minute and 20 seconds. The market is on the rise and so is the need to take responsibility for those rentals.

If you are a landlord, it is your responsibility to ensure that the property is kept up and properly maintained. The question is, is that property protected against uncontrollable circumstances? That is where landlord insurance comes into play. 

What Is Landlord Insurance?

Landlord insurance is a special type of coverage that provides real estate owners with financial-based protection in the event of an unforeseen circumstance.

Examples include property damage, an injury sustained on the property, or if the property become unlivable due to an event that is catastrophic – such as a storm or a fire.

While it is true that homeowner’s insurance will provide limited coverages for properties that are rented out, it is also true that you will need a separate landlord insurance policy to ensure complete protection. 

What Does Landlord Insurance Cover?

Landlord insurance do vary in their coverages; however, most policies offer the following protections:

  1. Property Damage – The policy will cover the structure in the event of serious weather conditions, fire, and/or activities that are engaged in by criminals. The coverage includes the rental and any type of additional building associated with the rental – such as a garage or a shed. If items are kept on the property for the purpose and intent of maintaining that property, those items may be covered, too. An example of this would be a lawn mower. 
  2. Liability – This coverage provides financial backing if a renter or another person on the property sustains an injury. Examples of the services provided may include medical costs and even legal fees. 
  3. Loss of Income – Due to the fact that the covered property is an income producing property, the landlord insurance will have a coverage that will reimburse you for any loss income as a result of damage due to a covered loss – such as a fire. 

Is There Anything Landlord Insurance Does Not Cover? 

Yes, there are several things that are not covered by landlord insurance. These include the belongings of your tenant, standard repairs, maintenance, and owner-occupied properties. 

Is Landlord Insurance Expensive? 

It is a known fact that rental properties are considered to be high risk investments. They are more likely to become damaged and/or experience other types of detrimental incidents. As a result of this, it is more expensive to obtain landlord insurance than other types of property insurance.

If you have an interest in obtaining landlord insurance, contact us here at Modica Associates today. We can work with you to establish what types of coverages you should obtain for your rental. Then, we will work with you to get you the most competitive rate.

To learn more, contact one of our insurance professionals today by call the following number: 718-855-1836

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