Investment properties need to be protected with landlord insurance. As an investor, your standard home or building insurance will not protect you against any damage caused by your tenant. Just like with any other type of insurance that you acquire, it is important to be aware of the policy you choose and the coverage you are entitled to.
What to Expect from your Policy
- Knowing what your insurance policy entails can save you significant amounts of money in the long run if you have a claim to make. There are various items that will be covered by landlord insurance and these include damage. Your policy will provide coverage for intentional destruction of property that is carried out by your tenants or their visitors.
- The policy will make it possible for you to be reimbursed for rent that is not paid and further cater for the costs that arise from evicting tenants who do not want to pay their rent. Liability coverage refers to coverage for tenants or their visitors who may be physically injured while on the property because of a problem that puts them in harm’s way.
- You also need coverage to protect you from theft and for additional protection of your personal items that are within the building or property. While one might think that every landlord would automatically take out insurance for their investment, it is surprising to note that some landlords still rely solely on other types of insurance.