Who Needs a Landlord Insurance Policy?
If you are a landlord, then you need a landlord insurance policy. This applies to anyone who rents living space to a tenant. The landlord policy protects landlords from the damages that can occur to a property while occupied by a tenant. Tenants can destroy a property so it’s smart for a landlord to get a policy.
Whether or not you need a policy depends on your situation. Those who rent out a room to a tenant, and still live within their home, do not need a landlord’s policy. But anyone who rents a space larger than a room to a tenant, whether in a home or condo, will usually need a landlord’s policy. That’s because damages to the property will not be covered under a homeowner’s policy. There has to be a landlord policy.
How it Works
It’s simple. The landlord takes out an insurance policy on their property and pays the premiums to keep the policy active. This coverage usually includes the dwelling (the walls, floor, roof, and other fixtures) and the property. If there are damages, then the landlord can make a claim.
Types of Landlord Policy
A landlord can decide if they want to secure only their property or also the contents. The contents include things such as refrigerators and other non-permanent fixtures. The landlord can also acquire separate fire, flood, and earthquake coverage, which may be necessary depending on area.
Landlord policies are beneficial because they provide financial assistance to landlords. The policies protect against damages to the property. Interruption coverage is good as well because it pays a portion of the landlord’s rental income in the event that the property is unlivable.