Last updated on: July 12, 2021
Building your real estate portfolio? Branching out and adding the “landlord” title to your resume, or maybe a bit of both? If you’re renting or leasing a residential or commercial property, whether on a short-term or long-term basis, landlord insurance is highly recommended for a growing list of legal and financially beneficial reasons.
What does landlord insurance cover? In the majority of cases, landlord insurance covers events, damage, liability and other situations that homeowners insurance policies alone may not.
We’ve rounded up the top tips and information in a one-stop-shop landlord insurance guide. Read on—you’ll certainly be glad you did!
The Top 5 Benefits of Landlord Insurance:
1. Properly protect your assets.
- Property that is rented or leased on a consistent basis risks having a homeowners insurance claim rejected if the appropriate landlord coverage is not in place and up-to-date.
- In fact, the majority of these claims are denied due to lack of adequate landlord insurance policy protection.
- This could mean major damage to your personal and professional financial situation without proactive planning.
- In the event of extensive damage to your property, that is in turn rejected by your homeowners policy, you’re looking at potentially devastating financial loss.
2. Extend your liability coverage for an added layer of protection against injuries.
- Chances are, your homeowners policy and/or personal liability insurance will not cover any injury sustained by a person while renting your property.
- This is an important point to consider particularly if you regularly rent your property for temporary periods of time (think vacation rentals).
- Many homeowners policies do not extend coverage in these situations. As always, check with your provider to assess your current coverage and any exclusions that may exist.
- Ensure that you’re covered as much as possible with your landlord insurance agent, who will specifically address these possible situations with you—which actually occur more than you would think!
3. Lock in legal backup.
- Solely obtaining a homeowners policy without the addition of landlord insurance coverage may also backfire in the event of a landlord-tenant legal dispute and/or lawsuit.
- In most cases, homeowners policies do not cover legal expenses (including representation) incurred from these types of proceedings—unlike landlord insurance coverage!
- Legal fees can quickly stack up, potentially wreaking havoc on both your personal finances and business interests. The longer the issue drags on, the more money you’ll potentially lose.
- Will your landlord insurance cover your legal costs? Yes! A “duty to defend” clause is usually included, which pertains specifically to legal disputes related to rented property.
4. Protection against troublesome tenants.
- Say you have a tenant in one of your rental properties who owns a dog, and that dog bites someone. Landlord insurance coverage will shield you from legal action on the part of the dog-bite victim and their attorney(s)—whereas a homeowners policy alone likely won’t be sufficient to cover the costs.
- One additional way to protect yourself from such situations is to require renters insurance from your tenant(s).
5. Recover lost income from uninhabitable property.
- In the event your property becoms an uninhabitable dwelling, in which the tenants are forced to leave, you won’t be left high and dry when you have intact landlord coverage.
- Most landlord insurance policies provide fair rental income insurance, which will supplement your lost income while the property is unlivable.
- Depending on the severity of the situation, as well as the duration, this is a highly valuable point in a landlord insurance policy.
Now that we’ve provided some pretty compelling reasons to support obtaining landlord insurance, do your due diligence and research the leading providers in the industry.
Alchemy Insurance Agency is the best at what they do. They’ve been in the business of connecting individuals, families, and businesses with their “perfect match” in insurance providers for more than 30 years.
Let Alchemy’s agents get to work for you—whatever your insurance coverage needs may be.
When you’re ready to explore the top landlord insurance options available, don’t waste time with the rest—Alchemy Insurance Agency is hands-down the best.
Visit https://alchemyinsurance.com/ today for more information on all of the coverage types, providers, and services offered by Alchemy Insurance Agency!