Landlord Insurance Basics
A landlord should always have insurance for their property. The insurance protects the building owner following property damages and financial losses. This policy covers the building, the furniture and other belongings inside. Since a property owner cannot guarantee that no disaster will happen, insurance is needed for a residential or commercial building.
Mishaps happen no matter where you live. This is why landlords need insurance to cover mishaps that happen to homes, condos and apartment buildings. This includes acts of nature, such as wildfires, thunderstorms and tornadoes. A single tornado could wipe out an entire town, while a hurricane could cause severe flooding.
Humans cause just as much damage, as well. Fire is a common and destructive type of damage often caused by humans. Fires can soar through apartment buildings and consume everything from walls to furniture. In addition to fires, there are gas leaks that can lead to explosions.
Other incidents, such as theft, vandalism and terrorism are covered under landlord insurance plans as well. In most cases, certain events are covered whether a tenant or a trespasser causes the damage.
An important option is liability coverage to protect against lawsuits. The most common accident that leads to legal action is a slip and fall. Anyone who enters a poorly maintained building could run into an accident, but the right policy protects the landlord from being sued.
Landlord insurance is not for tenants. The policies cover everything from property damage to liability insurance for accidents. There is also coverage for landlords who lose money because of late rent, and more.
For landlords with more than one property, there is multi-property insurance. Then there is loss-of-income coverage to receive compensation if the property becomes unlivable.