Securing Rental Income With Landlord Insurance
As a landlord, it is only natural that you would want to protect your investment. When your income is primarily derived from a rental property, insurance should be in your investment toolbox, regardless of the size of the property or income amount. There are many types of insurance policies for landlords to choose from, so you will need to choose the one that is best for you. Here is some essential information about landlord insurance that smart investors need to know.
Litigation Protection
As mentioned above, there are numerous types of insurance available to landlords in this state. Many policies pertain to tenants and rent, such as the ones listed below.
- Liability coverage will protect you in the event that someone decides to take legal action against you after experiencing an accident or loss on your property. For example, if a tenant’s vehicle is broken into, he or she could potentially file a lawsuit against you. Umbrella coverage, a more comprehensive form of liability insurance, can also provide you with protection if you own multiple properties.
- Premises Medical Protection coverage will provide adequate medical care in the event that an individual is injured while on your property. This is an excellent protective measure for both you and your tenants – tenants receive medical care and you are protected against potential lawsuits.
- If a property is damaged beyond habitability and tenants are forced to live elsewhere, fair rental income coverage can provide landlords with up to 12 months of compensation. This means that you will be able to cover your expenses while your property is being repaired.
The aforementioned coverage types can protect you and your tenants under extreme circumstances.
Property Protection
Tenants are extremely important, but so is the actual building that they reside in. If your building is damaged, your primary source of income could dissipate.
- Dwelling and other structures protection will provide monetary compensation in the event that the building or the structures near it (ex: barns, fences, sheds) sustain damage.
- Building code coverage can help you pay for renovations or improvements related to structural codes. These expenses can be costly, but your insurance policy may be able to provide considerable financial assistance.
- Properties that are under construction or renovation need protection too. Rental property under construction coverage will protect these properties despite the fact that they are not capable of housing tenants yet.
- As the name suggests, flood insurance protects you in the event that your property is damaged by a flood.
Securing your property against damage is one of the wisest ways to secure your rental income.
Burglary and Vandalism Protection
Wouldn’t it be great if everyone was honest? Unfortunately, that is simply not possible, but it is possible to secure your property against burglaries and vandalism. Burglary coverage will provide you with compensation if any items are taken from your property without your permission. Vandalism will cover you if your property is vandalized. Both types of coverage will usually pay for any building damages related to these acts.
Contact an Insurance Professional
If you currently own a rental property, you should definitely consider purchasing landlord insurance. Before choosing a policy or add-on, you should be sure to consult an insurance professional. Reach out to Insurance by Castle to learn more about protecting your rental property. We are available to answer any questions or concerns you may have at 800-644-6443.
