Landlords need more protection than they think
Do Landlords need more than the basic homeowners policy? Absolutely. This is because individuals/landlords actually have higher risk to own a tenant-occupied property than owner occupied. There are more things that can go wrong and less possibility of preventing liability related claims. A landlord policy protect the owner against:
- Loss of Rental Income
- Accidental Damage
- Malicious or Deliberate Damage by Tenants
- Loss by Fire, Storm or Theft and other Perils
- Public Liability and Legal Costs
These policies provide piece of mind against the many possible issues that many arise. Let’s say there was a fire. Not only would the insurance pay to repair the property, but it would also pay for loss of rent while the property is being repaired. Furthermore, if the ideal tenant becomes your worst ’nightmare’ and sues due to injuries experienced on the premises, the increased liability coverage comes in very handy.
This liability coverage doesn’t just stop at the tenants. Landlords face liability risks from several other factors such as uninsured or under-insured repairmen working on the property, aggressive animals and occurrences from slip and fall accidents to the tenant or guests.
It’s critical to protect not only the rental, but also other assets, should your liability coverage be exceeded, as a result we also recommend getting umbrella coverage for excess liability protection.
Additionally, landlords can purchase "Legal Expenses" coverage as part of the landlord’s insurance policy. This provides coverage for all costs accrued in fighting legal cases where he tenant stop paying the rent and refuse to leave the property.
Finally, as a landlord, you should consider requiring your tenants to carry renter’s insurance. Renters insurance will not only protect give you tenants coverage for their items, but also provide you with added liability coverage in the case the actions of the tenants cases harm to someone on your property.
