If You’re a Landlord, You Might Need This
Let’s say you own an apartment building, and you have tenants occupying each unit. Great! Now, what happens when one of those tenants has a major appliance break down? What if one of their guests injures themselves on your property? Who is responsible? If you only have standard homeowner’s insurance, you could be the one stuck with the bill.
Enter landlord insurance. A comprehensive landlord insurance policy will protect you from things such as property damage and personal liability, like in the above situations. It will also cover you in the case of lost rent income if your property sustains damage that prevents it from being rented out.
Additional coverage you may be able to find includes flood insurance – which isn’t always included in your standard homeowner’s insurance policy – as well as guaranteed income insurance, in case a tenant fails to make part or all of their monthly rent payment. Emergency coverage is another bonus that can cover travel and repair costs in the event that your tenant needs something fixed right away.
The cost of landlord insurance is going to depend on several factors. Generally speaking, it will cost approximately 15-25% more than your typical homeowner’s insurance. However, if you ask your homeowner’s insurance carrier about bundles, they may be able to give you a discounted rate. Your rate will also depend on the length of the tenants’ stay – the longer the stay, the lower the premium.
The most important thing to do when considering whether or not to purchase landlord insurance is to take a close look at your homeowner’s insurance policy and see exactly what is, and is not, covered. Weigh your options, and decide if landlord insurance is right for you. As with any insurance policy, it pays to do your research. Happy renting!