Landlord insurance, also called rental property insurance, is a type of policy that can be held by a rental owner to protect against certain financial losses. These policies come with various add-on options so that individual landlords can customize a policy that fits their specific needs. Youi Landlord Insurance https://www.youi.com.au/home-insurance/landlord
Some of these add-ons include:
- Rent Guarantee
- Legal Expenses
- Landlord’s Emergency
- Contents Coverage
What Does A Basic Landlord Insurance Policy Cover?
If you are looking for a basic landlord insurance policy without any of the special add-ons, it typically will include three different components. These include property damage, liability insurance, and loss of income. Let’s take a closer look at each one of these below.
This part of your landlord insurance covers both personal and property damage due to incidents, such as theft, vandalism, tenant damage, fires, and storm damage. This is the part of the policy where your insurance company agrees to pay the replacement cost of your rental property if it is deemed a total loss, assuming the cost doesn’t exceed the maximum amount set in your policy.
This component covers costs associated with liability lawsuits and claims against you, the landlord. If a tenant, employee, or visitor on your property is injured they may take legal action against you. This liability insurance covers the costs associated with the person’s injury if you are found at fault. These include medical expenses, funeral costs, legal fees, settlement fees, and judgment fees.
In addition, any person’s belongings that were damaged while on your property can be covered under this insurance if you are deemed at fault for the incident. An example of this would be a leaky pipe that damaged a tenant’s book collection. Your liability insurance would cover the cost of replacing your tenant’s book collection.
Loss Of Income
This is another key component of your landlord insurance policy. In the event that your rental property becomes uninhabitable, you can get paid rent by the insurance company until the property is repaired. Uninhabitable circumstances could be due to events such as storm damage or an apartment fire.
This component is meant to protect your income while your insurance pays to rebuild your property. Most policies will cover the landlord up to three years of reimbursed rent payments. However, every policy can be different so you should check with your insurance provider to figure out how long they will pay for loss of income.