If you own rental property, most notably an apartment building or condo, then you should consider landlord insurance. The coverage helps maintain the property by providing financial support for repairs and various expenses. It also provides liability coverage for assistance when dealing with lawsuits or paying medical bills of people hurt on the property. In short, coverage is for any landlord who doesn’t want to assume all the financial risks involved when renting out property.
Just like with other insurance, you have to pay premiums to make sure the insurance remains active. If you file a claim, you need to cover the deductible amount, and then, the insurance carrier will step in to cover the damages.
Types of Coverage
If nothing else make sure to have liability coverage. Liability is important because it helps to protect you financially from lawsuits and medical costs if a visitor is injured on your property. Rental properties often have laundry rooms, swimming pools, hot tubs or playground areas. Anyone using these facilities could be injured, and then you would be responsible should they file a lawsuit.
Property damage is important as well. It helps with the costs of rebuilding or repairing your property if lightning, fire or a natural disaster strikes. And loss of income covers the loss of your income if the property becomes uninhabitable.
Landlord insurance is the best way to protect your investment and income. Without coverage, you run the risk of facing financial ruin should disaster strike.