The Importance of Landlord Insurance
You need to think about many things when renting out a building, apartment or condominium. You could be held legally and financially responsible for a variety of events even if you are nowhere near the building. This is what landlord insurance is designed to handle. It is important that you understand the importance of landlord insurance when renting out a property.
Cover Repairs When Unexpected Damage Occurs
Rental properties are exceptionally vulnerable to damage, especially when the owner does not live there constantly. Strong winds, flying debris or lightning could severely damage the building. Tenants might end up causing massive damage inside an apartment or rented house. You need landlord insurance because it can cover repairs when unexpected damage occurs. You will be compensated for any repairs that stem from something unexpected like tenants or weather. This can help to keep the cost of maintaining the property down.
Protect Against Liability Lawsuits
Liability lawsuits can come from many people when you are the landlord of a rental property. Tenants could sue for bodily injuries claiming that they were caused by some defect in the apartment. Guests of tenants could file lawsuits. Tenants could claim excessive property damage amounts because of something in the building like a leak. Even someone trespassing on the rental property who is injured could file a claim. Landlord insurance is critical because it will protect you against liability lawsuits. The policy can cover many things, including legal fees and the actual damages, if you are found liable.
Minimize Losses if you Cannot Collect Rent
Renting out a home, apartment or condo is part of your regular income. You expect to see that income every month. Unfortunately, damage from a severe storm or vandalism by tenants could make your apartment unlivable until you repair it. That means you lose the rental income. Landlord insurance is important because it can help to minimize losses if you cannot collect rent because of issues with the rental property. This means you can get all or some of the rent from the insurer until you resolve the issues with the building or apartment.
Get Optional Coverage for Your Own Possessions
Landlord insurance policies often have additional coverage options that you can take if you want. One of these can protect your own possessions kept in the rental property. These could be things like grills, artwork or even items in storage. This type of policy can potentially pay for the repair or replacement of those items if tenants or other events damage them.
