How Landlords Should Cover Their Properties Against Risks
A rental property is a source of monthly income for landlords; any damage to it can be a cause of losses. As a landlord, you have to ensure that the property remains in good condition. Want to cover your rental property from unforseen damages and losses? Apply for a landlord 's insurance. Available with various financial service providers, this insurance covers your property from damages caused due to natural calamity, including earthquakes, floods, fire-related accidents, among others.
MakaaniQ tells you more about landlord's insurance:
What does it cover?
- A landlord's insurance covers your rental property against damage caused due to unforeseen circumstances including theft, vandalism, earthquake, storm, fire and even tenant damage. In such a scenario, an insurance covers all the replacement costs involved of the areas that have been damaged. For instance, your property has a fire accident and say the kitchen is completely damaged. A landlord's insurance will help cover the replacement cost you will incur in repairing the kitchen. But, before you make claims, know what all is covered in the insurance including type of products and the upper limit of the cost. In case making a claim, you will have to pay the deductible amount to your insurer in order to get reimbursement.
- In case the property has been uninhabited for long due to repairs caused by damage, the insurance covers that too. For instance, due to the fire accident, the kitchen repair is taking time. This makes your property uninhabitable for a few months. Here the insurer will provide you with the monthly rental of the property as compensation until the property is ready and rented again.
- For instance, where the case of damage has been moved to the courts, the insurance covers the cost involved there including expenses, claims and lawsuits. This holds true in case of tenant injuries where the tenant has taken you to the court for the damage caused to them. Here is all you need to know about tenant injuries.
- There are additional covers that you could opt for. These include rent guarantee insurance, landlord contents insurance, among others. These are add-ons and can be customised into the insurance cover that you pick.
Why do you need it?
- The insurance guards you against sudden losses due to property damage and also, compensates you for the costs you will incur.
- You can get rent reimbursed at times when the property is being repaired.
- With landlord's insurance, you will be compensated more than a regular home insurance. It will cover all the loss and damages of a rental property along with liability claims.
- Saves you from spending on the damages caused by tenants.
Factors that define the cost of insurance
- Size of the property
- Geographical location
- Number of units
- Whether or not the property has advanced security systems