Landlord Insurance Policies
Many landlords are not sure of the type of coverage that they will need when they begin to take on tenants. Whether it is a multi-family building or a spare room on one’s property, much more than homeowner’s insurance will be needed. Here is a closer look at the basics of landlord insurance and exactly what it will cover in the event of common accidents, injuries, and mishaps.
As soon as an individual begins to rent out a piece of property their risks are going to increase. This means that other forms of insurance will simply not cover some of the costs that may come as the result of these risks. Primarily, landlords are going to be in need of extended coverage that will help them cover some or all of the expenses directed at a landlord in the event of a variety of common issues. This begins with a closer look at the type of rental unit and the length that it will be rented. Long-term residences that are rented out will require a different style of coverage when compared to vacation rentals.
Landlord insurance can be called a number of names such as a special perils policy or dwelling fire policy. These policies are typically added as an extension to the property insurance that covers the dwelling or the homeowners insurance that covers the building. While the numbers do vary between policy holders, insurance providers, various risks, and the location of the property, landlords can expect premiums to raise by about 15 or 20 percent depending on how much coverage they would prefer.
It is also important for landlords to note that these policies will cover any buildings they own on the property, such as sheds, as well as any of their possessions of the property. Some may also wish to extend coverage to include unforeseen instances such as an accident or vandalism that makes the home unlivable, income loss protection, or an umbrella policy for additional liability protection. Each of these can be rolled into a basic landlord policy for complete protection.