What Does Landlords Insurance Cover?
Landlord insurance is a policy that offers coverage to homeowners who are either renting out their houses or apartments. It protects from losses when tenants fail to pay rent. It may cover damage caused by natural catastrophes like fire and bad weather. Here are some of the coverages:
Property Damage Insurance
Property damage insurance may cover any physical damage to the home and any structures on the property caused by bad weather, fire, criminal activity, and additional buildings like sheds and detached garages. This type of insurance should cover equipment, including lawn mowers and snow blowers.
Liability insurance may protect you from claims of bodily injury and property damage from a third party. It may protect you from medical bills, legal fees, and damage to your and others' property.
Loss of Income Insurance
The loss of income insurance may reimburse you for the income you lose when your rental property is damaged and can't be rented out when it takes to make repairs. It's a great way to protect your financial future and your tenants.
What Landlords Insurance Doesn't Cover
While most landlord policies may provide cover for expenses caused by several sudden and accidental damage, keep in mind that your landlord policy will likely not cover certain things, such as:
Maintenance and equipment breakdown
If a home appliance breaks down, resulting in the need for repair, the homeowner must pay for it out of pocket.
Property you share
According to the National Association of Insurance Commissioners, you're not typically eligible for a landlord policy if you live on the property and rent out a room or another floor to a tenant.
The landlord's insurance would not cover tenants' possessions. For this protection, your tenants will need their own renter's insurance policy.
You want to protect your investment as a landlord, so renting out a property or an apartment can be a great opportunity but it carries risks. Before you embark upon this path, make sure that you have everything you need to protect yourself, your property, and your renter in the event of anything unexpected happening to your abode.
At Second Western Insurance Services, we do our best to make sure that our clients are well-protected with affordable and comprehensive policies. We will 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. Topics and coverage discussed in this article are not guaranteed, consult with your agents to determine what your policy does and does not cover. We are more than happy to help!