What is Landlord Insurance?
Landlord insurance protects the interests of individuals who collect rent money from residential real estate. This insurance policy can be used to fund major repairs for damage that’s done by extreme weather or deliberate actions of tenants. Landlords can be assured that their property remains in proper condition even if they aren’t present to monitor the renters.
Who it is for:
This insurance benefits landlords who owns residential property such as condominiums, apartments, townhouses, duplexes and homes. A landlord is the person who officially holds the title or deed to such real estate. Therefore, only such an individual has the right to purchase an insurance plan that is designated for landlords.
How it works:
A landlord who leases his or her property qualifies for this form of insurance protection. In order to file a claim, such an individual has to show proof of ownership to the insurance company. The spouse or other relatives of the landlord are not allowed to use any funds that are specifically supposed to be allocated only to a person who owns an insured piece of real estate.
Different Types of Coverage in Existence
Insurance for landlords protects the interior and exterior of an insured property. For example, damaged rooftops and window frames can be repaired with money that’s provided by the insurance agency. Permanent structural parts of a property are fully covered when a claim is made by the landlord. Inside an insured home, detachable items such as lighting fixtures and appliances can also be covered by this insurance package. The cause for the damage doesn’t play a role in the final amount of money that’s given for repairs.
A landlord depends on monthly rent as a major source of income. If tenants leave before a lease term expires, the landlord is going to lose significant sums of money. Fortunately, insurance for landlords can compensate for the losses that are associated with premature eviction of renters. Additionally, landlords can have peace of mind that their property will be repaired promptly even if rogue tenants cause deliberate structural damage before leaving.