Understanding Landlord Insurance Policies, Price and Quality


A lot of property owners today are unexpectedly becoming landlords. What with the slow development in the real estate market, many would rather wait and have their properties rented instead of selling them with very little to no profit. In such economy, no one could afford having their investments lying around and not making money. Now, property owners are consequently converting their homeowners insurance to landlord insurance policy as it provides more comprehensive coverage for the landlord’s property rather than the traditional homeowners insurance. It is best if you compare insurance policies and price before jumping ship to get the best out of your investment.

The Coverage
Like any other types of insurance, the landlord insurance policy offer monetary assistance for unlikely but highly potential occurrence of unfortunate events. The major problem for landlords is when their properties become uninhabitable place to dwell, at which case they need insurance that will help prevent monetary loss. Of course the amount or the limit of the monetary assistance depends upon how wide your policy covers. Common policies cover incidence of theft, vandalism, fire, natural disasters like earthquake, hurricane and tornadoes but not flooding. If you want coverage for this event, you have to get additional policy. Some portion of your premium also goes to landlord liability insurance, wherein you as the property owner are protected against lawsuits in cases of accidents happening within your area of responsibility. It also covers medical liability to up to the limit of your policy. Some policy covers $1,000 to up to $10,000 for medical assistance. Now, it is important to note that most landlord policy does not cover personal belongings of your tenant. You might want to encourage your tenants to get renters insurance policy to get protection.

The Cost
Of course like any other insurance, landlord insurance policy can be very expensive. However it does protect your investment from greater loss. If you are unsure about just how much coverage you need, it is recommended that you call agencies that assist in finding cheap landlord insurance. These agencies are widely available online. They will help you get quotes, compare quality of the coverage and even explain how the policy works for you.

The benefit

Now, Landlord insurance is there to provide monetary assistance for property owners who have decided to rent out their property. Homeowners insurance is almost the same as landlord policy coverage except that it protects your property as a landlord, which means that if your property has been vandalized by your own tenants you will get monetary assistance from your insurer. A small portion of your landlord policy goes to the medical liability and some portion to the liability coverage. If your property has been vandalized and was broken into or natural calamities took place, you can rest assure that your investments are protected.

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