Owning a residential rental property comes with a lot of responsibilities when it comes to maintenance and security. Landlord insurance gives property owners some peace of mind when it comes to paying for any repairs and renovations due to natural and man-made damage. However, this type of insurance policy is only valid on a home or apartment that is leased by tenants. An unoccupied property that has no tenants may not be insured under this plan.
How it Works
Once a residential piece of property is ready to be leased, it can be officially insured by a policy that’s designated specifically for landlords. The policy is designed to protect the financial interests of the owner throughout the course of a given lease term. The lease contract usually has to be submitted to the insurance agency in order to finalize the activation of the policy.
Different Types of Coverage
The most expensive parts of a home include the supporting structures such as foundations, load-bearing walls and rooftops. A landlord with this type of insurance is fully responsible for repairing such fixed or permanent structures. The insurance also pays for replacements of detachable items that have been damaged by tenants or their guests. For example, major appliances and lighting fixtures may be replaced with the money that is issued by the insurance agency. Liability coverage also saves landlords a lot of money when it comes to legal matters involving physical injuries that have occurred on an insured residential property.
For those who collect rent money from residential real estate, having landlord-specific insurance provides many financial benefits. This insurance gives peace of mind for landlords who might suddenly lose their rent income due to various reasons, such as the eviction of tenants. Natural disasters and man-made accidents can also damage a property to the extent that good tenants have to leave without owing anything to the landlord who has a viable insurance policy.