Landlord insurance policy is a type of coverage that protects the building owners from theft or other damages from fire or floods. It is not a legal requirement to acquire the insurance policy, but it plays a vital role in protecting your financial future. Usually, most tenants pay their rent on time and also gives it the appropriate amount of maintainence. Nonetheless, there are always unprecedented risks that may result in damage to the property. In some instances, the mortgage or loan provider may require you to obtain the insurance coverage before you take on tenants.
Why Get Coverage
Rental properties vary in sizes and shapes hence the need to get coverage that meets all your needs. The features of the insurance policy vary depending on the type of policy and the coverage options too. An insurance company provides protection only for the property in your plan, leaving you with huge financial burden in case you are underinsured. Therefore, is important to ensure you get the ideal insurance policy to cover you in the event of an accident.
Your insurer may not ask information about your tenants, but it is important to maintain updated information on the current property occupants. They may also require information on the house rebuild cost and the cost of the personal property in the house, the house build date and the details of any claims done in the last five years. The insurer may also seek information on the types of locks and alarms in the house as well as the kind of home occupants.
Coverage options and Discounts
A homeowner should customize the landlord insurance policy that suits his needs. Some of the policies that he should consider having include loss of rent, legal cover, inflation, property damage, liability insurance and fair rental value coverage. Additionally, the property owners get various discounts such as multi-policy, new home discount, and early renewals among others.