The Importance of Landlord Insurance
Insurance options are available to landlords in charge of residential buildings that include apartment complexes, condominiums and townhouses. Landlords have certain responsibilities that require them to collect rent, make repairs, settle disputes and more. They need insurance to protect their property and financial investments.
The Uses and Benefits
Landlord insurance offers protection against legal action brought by tenants, property developers and residents. Landlords have a wide range of financial duties that mainly include paying for property repairs and regular building maintenance. Like car or home owners, many of them are not able to afford out-of-pocket expenses.
Some landlords deal with hundreds up to thousands of tenants at the same time, so they constantly deal with threats to the function and appearance of their property. They deal with tenants who lag behind on their payments and the ones who make complaints against them. All of these risks are covered by landlord insurance.
Insured landlords remain financially stable and make all of their payments on time. They are better able to handle claims without worrying about losing their property investments or filing for bankruptcy.
The Different Types
Property damage insurance is the main type of coverage needed by landlords. Every
residential building must adhere to minimum health and safety standards, according to local property laws. Even with regular maintenance, landlords are faced with the risks of reckless tenants, incompetent repairmen, trespassers and natural disasters. Insurance helps them to cover all types of building damages that include lightning strikes, arson, theft and vandalism.
Liability insurance is needed wherever there is a building that people enter and exit regularly. Landlords can be blamed for any slip and fall that occurs on the property. If they are found to be negligent, they are better off paying their claims with the help of the insurance company. The insurer also helps to determine who is at fault and clear the landlord of wrongdoing.
Rent guarantee insurance is made for landlords who have problems with irresponsible tenants. When the residents cannot pay their rent, the landlords cannot pay theirs. After landlords evict tenants, they need their monthly payments to be covered as they screen for new residents.