Landlord insurance is an insurance product that not a lot of people know about mainly because it is a a specialized kind of insurance that only a particular segment of society can avail. But if you are planning on investing in property that includes apartments or any property that would involve getting tenants then you should know what landlord insurance is.
Landlord insurance is a type of insurance that you get if you own property that you rent to tenants. This type of insurance is what you get if standard house insurance is not enough to meet your needs.
Typically, landlord insurance will include a number of things. First, it should have third party liability that will cover damages that a tenant might inflict on the property. The damage will also include not just the ones made inside the units they rent but also on the very structure of the property, too. The insurance will also cover any costs that will be incurred in the event the tenants will need to be rehoused in the event the property becomes inhabitable (say, when there was a fire or a destructive flood). Also covered is any furniture or items the tenants own that will need to be left within the property. Finally, the landlord insurance will also protect you from any liability in case a tenant gets injured while inside your property and makes a claim.
There are certain things that landlord insurance will not be able to cover. For example, there is no standard coverage for tenants who are not able to pay their rent. But you can add on this cover to your insurance policy if you want (it can also be bought as a separate policy). Another thing that is also not covered in a standard landlord insurance is legal cover – the protection you get for legal expenses that maybe incurred in case you need to bring your tenant to court.
Landlord insurance is an insurance product that is offered by many insurance companies. When you do shop around for landlord insurance don’t make decisions based solely on price. You need to read the terms and conditions of the policy because different companies will have different offers and features for their products. Make sure that what you get is the type of total landlord insurance that you actually need.