It doesn’t surprise that most people don’t contemplate the need for insurance except in critical situations. Of course, this can be due to ignorance or negligence. However, it has been proven time and time again that insurance, more so landlord insurance, certainly comes in handy in unforeseen or emergencies.
Landlord Insurance: The Basics
Landlord insurance is a type of insurance specifically for individuals who happen to own their properties ranging from apartments, condos, or residential homes and intend to or rent out one or more of these. It provides coverage for losses from damages to one or more of your rental properties like fire outbreaks, burglary, or natural disasters.
In general, if you plan to invest in properties, landlord insurance will protect you from occurrences that could result in financial losses. It also comes with a variety of benefits.
Benefits of Landlord Insurance
- It protects you from damages and repair costs: Sometimes, a rental apartment might experience unavoidable wear and tear, and other times, injuries might be intentional, perhaps by a tenant holding a grudge or as a result of vandalism or a break-in. If the tenant(s) refuse to pay for damages, landlord insurance has you covered. As long as you have the appropriate coverage for such injuries, your repair costs will be taken care of.
- It saves you from rental loss: Rental loss occurs when your property is no longer habitable for a specific period due to a storm, flood, or fire outbreak. With the proper evidence of the occurrence of these events, you’ll be adequately insured for everything.
- It covers rental default and theft: There have been several cases of tenants refusing to pay specific rental bills, and some might even move out, leaving these outstanding bills behind. Landlord insurance will protect you from running into financial loss as a result of such defaults.
- It helps you limit risks: Renting properties can be tricky, especially if you don’t live in them. Thankfully, landlord insurance can help determine certain risks that accompany property investment. For example, landlord insurance has you covered in a legal issue, vandalism, or long-term negligence of a problem.
- It provides more comprehensive coverage: There are three different levels of dwelling protection in which landlord property coverage is offered. The first level (DP-1) only covers direct losses like fire and vandalism, and it pays depreciated cash value of the home at the time of the damage rather than the actual cost of replacement if the house is a complete loss. The second level (DP-2) provides more comprehensive coverage for expressly stated events like collision, tenant damages, hail, windstorm, etc. To get coverage for a particular loss, it has to be listed on DP-2. Lastly, the third level (DP-3) is also referred to as an open-peril policy wherein the cost of replacing a lost dwelling is paid.
Landlord insurance varies, and it is best to find the right one befitting your circumstances to be well-protected. At AIMPRO Insurance, we offer flexible and adjustable payment options and schedules to suit your unique financial needs. Contact us today to get started!