Landlord Rental Property Insurance
As a landlord, owning a rental property comes with a unique set of risks that need to be protected against. Landlord insurance can help you with this. In this article, you will learn about landlord insurance so that you can understand why it is important. It will also help you make a better decision while searching for one.
What is landlord insurance?
Also known as rental property insurance, landlord insurance is a form of insurance created to protect landlords from any financial losses caused by liability claims, loss of income, etc. It is designed to protect landlords from the unique risks associated with renting out a property to tenants.
What does landlord insurance cover?
Landlord insurance typically covers the following:
- Property damage: This includes damage to the rental property caused by fire, storms, vandalism, and other covered perils. It also covers any debris removal and repairs necessary to restore the property to its pre-loss condition.
- Liability: If a tenant or their guest is injured on the rental property, landlord insurance will cover the legal fees of the liability lawsuit. This also includes damage caused by the tenant or their guests.
- Loss of rental income: If the rental property becomes uninhabitable due to a covered loss, landlord insurance will reimburse the landlord for any lost rental income while the property is being repaired.
- Additional living expenses: If the rental property becomes uninhabitable, landlord insurance will also cover the cost of any additional living expenses incurred by the tenant, such as temporary housing.
What does landlord insurance doesn’t cover?
Here is what the landlord insurance doesn’t cover:
- Normal wear and tear: Landlord insurance does not cover damage caused by normal wear and tear on the rental property. This includes things like scratches on hardwood floors or faded paint.
- Flooding and earthquakes: These are typically not covered under standard landlord insurance policies and require separate coverage.
- Intentional acts: Landlord insurance will not cover damage caused by the landlord or their employees intentionally.
- Illegal activities: Landlord insurance will not cover any losses incurred as a result of illegal activities, such as drug manufacturing on the property.
How much is landlord insurance?
The cost of landlord insurance can vary depending on a number of factors, including the location of the rental property, the value of the property and the level of coverage desired. On average, landlords can expect to pay between $300 and $1,000 per year for landlord insurance. However, in high-risk areas such as coastal regions, the cost of landlord insurance can be significantly higher.
It’s important to keep in mind that the cheapest insurance policy might not be the best option. It’s crucial to review the policy and make sure it covers the most important risks that are specific to your property. It’s also wise to shop around and compare quotes from different insurance companies to find the best coverage at the most affordable price.
Landlord insurance is a necessary expense for any landlord looking to protect their rental property and income from potential losses. It’s important to shop around and compare quotes from different insurance companies to find the best coverage at the most affordable price. As a landlord, having the right insurance in place will give you peace of mind and protect your investment for the long term.
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Contact SunGate Insurance Agency today learn more about the type of insurance you need. Click here to contact us or call (407) 878-7979.
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