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The 3 Core Protections Your Landlord Insurance Cover


New landlords renting out a house or an apartment may expect that their homeowner’s insurance will cover all expenditures in the event of a natural calamity. But that is not true.


Hence, a special landlord policy is necessary because standard homes insurance only covers rental properties to a limited extent. So, what does this landlord policy cover?


3 Core Protections Your Landlord Insurance Cover

A comprehensive landlord insurance coverage will cover three things:

  1. Property Damage This includes coverage in the case of a natural catastrophe, fire, electric/gas failure, earthquake, vandalism, or irresponsible tenants causing damage to the real estate or furniture.

  2. Lost Rental Income Suppose your property becomes unusable (due to severe mildew, termites, a rat infestation, or a sinkhole). In that case, this coverage gives interim rental compensation to offset the rent money you'd normally earn for the rental.

  3. Liability Protection Liability protection covers medical or legal fees that may arise if a tenant or visitor is injured due to a property maintenance problem.


What Are the Additional Coverages for the Landlord Insurance?

Numerous additional coverage may be included with the landlord insurance policy. They aren't as important as the major terms mentioned above, but they might come in helpful and save you money in the long run:


Guaranteed Income Insurance

The Guaranteed Income Insurance protects the landlord if a renter fails to pay rent for one month (or does not pay at all).

Flood Insurance

Because many landlord insurance plans do not cover flood damage caused by natural catastrophes, this policy is worth adding if the property is in a flood-prone zone.

Emergency Coverage

If a tenant sends you out to repair anything, such as a leaky dishwasher or gets accidentally locked out of their home, this option may assist in paying for the things you need to fix the problem.

Additional Construction Expenses

This will pay the costs of bringing a structure up to the safety code after being damaged.

Conclusion

Examine your home’s insurance coverage before deciding to rent out a piece of property. If you're not living there, don't expect it to cover any damages or expenses. Landlord insurance is needed if you wish to protect yourself from property damage, loss of rental income, and liability.

At Second Western Insurance Services, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (818) 952-5203 or CLICK HERE to request a free quote.


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