Sunday, October 3, 2021

Do I need landlord insurance?

Do I Need Landlord Insurance?

Are you currently renting or have plans to rent out a home you own? If so, you should seriously consider purchasing landlord insurance if you haven't already. After all, without this type of coverage, you could leave yourself open to severe financial losses that you may not be able to shoulder on your own. To better understand if landlord insurance is right for you, here's a brief description of property and liability protection - two common types of coverage offered through landlord insurance.

Landlord Property Protection

Landlord property protection helps landlords pay for fixing or replacing any physical property that becomes damaged or lost due to a covered event. Such protections cover the main dwelling itself and other structures on the rented property should a covered event like a fire, windstorm, lightning strike, or theft occur. In addition, landlord insurance may also cover certain maintenance items like lawnmowers and snowblowers, so always check the policy details. Please note that any property protection claims will have a specified monetary cap and will likely require you to pay a deductible when collecting on the policy. Any deductibles and limits, however, will factor into the overall cost of the policy.

Landlord Liability Protection

Landlord liability protection helps landlords pay for another person's medical and legal expenses if an injury occurs on their rental property. Please note that while landlords aren't usually required to pay a deductible when making a liability claim, the coverage will only extend to the policy's stated monetary limit.

Though many landlords are content with the basic protections offered by standard landlord insurance, additional types of coverage may be worth considering per your unique situation. Such additions may include building code protection, protection for a rental property under construction, vandalism protection, and burglary protection. If you are unsure about your rental property's best insurance configuration, don't hesitate to ask an insurance broker for their expert advice.

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