The Importance of Landlord Insurance for Your Rental Property

As a landlord, you may try your hardest to only rent a home to trustworthy and responsible tenants, but sometimes accidents happen regardless of precautions taken to avoid them. Because of the inevitability of accidents, landlord insurance is of the utmost importance to acquire before renting out the home. Accidents, such as house fires, leaky roofs, deteriorating exteriors and so on, can affect any home at any given time. From minor to major accidents, proper landlord insurance is the only solution to ensure you don’t get left with a heavy bill in a worse case scenario.

Aside from purchasing insurance, landlords should always notify tenants of their own responsibilities to try to limit accidents as much as possible. Tenants have a responsibility to take good care of the home in order to prevent accidents while landlords have a responsibility to repair or replace damaged property that may have been inevitablly damaged. Naturally, many people have a tendency to care slightly less about property that doesn’t technically belong to them and may not put in the same effort that the owner of the property would in maintaining its appearance. This is just one more reason why landlord insurance is incredibly important to purchase.

Landlord insurance on a rented home is also important from a liability perspective. If a tenant becomes injured or has his or her health compromised by the conditions of the home, this could even escalate to a lawsuit. A lawsuit could even result in the landlord shoveling out a lot of money for something that could have been avoided with proper insurance. Instead of getting tangled up in legal fees, hospital bills and other consequences of not having insurance, landlords should always bite the bullet and purchase a good insurance plan to stay covered under all circumstances.

Why Landlord Insurance is Important

Landlord Insurance to ShieldProperty owners who have been renting homes to tenants know the importance of having proper insurance on their investment. People who rent out a home or condo may think that a standard homeowner’s policy is enough to protect their home in the event of a loss or claim. The wrong policy on a property can have negative consequences in the event of a claim.

If the wrong policy on a property is used, there is a good chance that you are spending too much money for the policy. A homeowner’s policy has added coverage that is not found on a landlord policy. The personal belongings coverage is the one that is different. The homeowner will want to protect personal belongings from loss, but a landlord has only minimal interest in the belongings in the home since they belong to the tenants. Since the coverage amounts are less on a landlord policy, they tend to be cheaper than a normal homeowner’s policy.

Another reason to have a correct policy for a rental property is the insurance company can cancel a policy that is not correct for the risk being insured. No one wants to hear that their insurance has been canceled. So it is important to have the correct policy on any property.

One of the most important reasons why a landlord policy is so important for a rental property is that any other policy may not cover any loss on the property. For instance, a motorcycle policy will not cover a car if the car were to be damaged in a hailstorm. You would need an auto policy to fix the damage. The same holds true for homes: You need a homeowner’s policy to fix a home you own and you will need a landlord policy for a home that you rent out.