Image by : thehouseshop
Being a landlord comes with many responsibilities- responsibilities for tenants, and responsibilities for yourself. The whole home letting thing does not end in figuring out how much rent you are gonna charge your tenants. There is more to that. You also need to protect them and make sure that your property is serving its purpose well as their dwelling place. Furthermore, you also need to protect yourself from unexpected and unfortunate events. With this, each landlord should know the value of getting a landlord insurance instead of just the simple home insurance that every home-owner acquires.
What is a landlord insurance and how does it differ with the regular home insurance?
A landlord insurance specifically protects the landlord’s business instead of just protecting the property like how it is with the regular home insurance. As a homeowner, you’d need to protect your home from various unplanned circumstances that may cause damage not just to your house but to its contents as well. But as a landlord, you’re gonna need to protect your business from a different set of unexpected events that are gonna cost you so much money if you are not protected by an insurance.
Here are some of the covered incidents of landlord insurance that the regular home insurance do not come with:
Damage to property by tenant
Damage to property is one of the most inevitable events that a landlord could face once his property has been occupied by a tenant. Tenants could accidentally destroy something, or in some cases, tenants may purposely be damaging to the property for whatever emotional reasons. The landlord insurance protects the business owner of incidents like these. Regular insurance generally protects the property from damage, but only the landlord insurance specifically states protection from tenant’s damage to property. Regular home insurance may or may not include cover for other people’s damage to the property, which is why it is important to make sure that you are protected. This is rather important especially for the fact that you aren’t always there to look after your property. With a landlord insurance, you will be as good as safe from damaged property.
Nonpayment of tenants
One other thing that most landlords fear is their tenant’s inability to pay. This scenario is just as inevitable as property damage. Immediate unemployment or emergency expenditures may cause your tenants to lose financial balance and not be able to pay you on time. It may be okay to give a short grace period to give your tenants consideration, besides, they may have paid you a deposit in case of nonpayment. However, if months pass by with no luck, this is where the landlord insurance could come to rescue you. Landlord insurance could cover nonpayment costs and steer you away from losing months of rent money just because your tenant fails to pay you. There should be specific policies that come with this coverage and your insurance provider will explain everything that you need to know once you apply for it. But in general, a landlord insurance could come with a nonpayment coverage that every landlord deems valuable.
Losing tenants due to insured incidents
For some valid reasons, your tenants can decide to leave your home immediately. Whether for the reason that a calamity has destroyed your home, or if a burglar victimized the home, your tenant has the reason to leave if the home is no longer safe or comfortable to stay in. This coverage may not be applicable to ALL incidents that can cause your tenants to leave, but it does cover the more valid ones. With a coverage like this, you won’t fear losing money when you lose tenants. You can be sure that just as long as the incident is covered, you will be free from rehousing costs.
Liabilities for injuries
Your tenants should always be protected from harm all the time, because once they encounter an injury that is caused by your house’s faultiness, you may need to take full responsibility for it. If the floor tiles crack and it wounds or trips the tenant, you may need to answer to the injury. Any house, especially older ones, is prone to natural damages like cracks and faulty stuff. Unless the injury is solely caused by the tenant’s negligence, you as a landlord may have to take the blame. If you have a landlord insurance, you will no longer have to worry about the medical expenses that your tenants may demand from you in case they get injured. Many problems can arise if this incident is not insured. For instance, it is possible for you to think that the tenant may be lying. Besides, you did not witness the accident. In cases like these, arguments can arise and it may lead to intense misunderstandings. But if your insurance covers this event, you can easily pass the obligation to the insurance company and free yourself from stressing out.
As what others would say, ‘The paranoid survives.’ Well, in this case, it isn’t exactly about paranoia, it’s really about being prepared all the time. You don’t wanna be caught off guard when the unfortunate happens. This is why even though insurances are optional, most homeowners and landlords opt for it without hesitations. Yes it can cost you some cash but, no one can really predict the future, and who knows, you might actually benefit so much from the insurance that you paid for. Well, it’s always better to control what you can control like the faulty floors or malfunctioning plumbing, for the sole reason that you want to keep your tenants satisfied. But for the uncontrolled things, let the landlord insurance take care of it. Landlord insurance usually contains the same coverage as your typical home insurance that protects you from disastrous incidents like hurricanes and the likes, however, landlord insurance covers the extras that would also protects the landlord’s business instead of protecting just the property. If you’re still thinking twice about the landlord insurance and what it can do, speak with your agent, that way you can compare different insurance providers as well. – iLetProperties