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Why is Landlord Insurance Very Important for Business?
Renting a dwelling can provide an individual with a nice stream of passive income with landlord insurance in place of course.
However, it can become a nightmare if a property damage or liability situation arises. Landlords should be well-versed on their rights and responsibilities and should obtain rental property insurance prior to having any tenants.
Information on Landlord Legal Liability
This coverage protects the rented real estate from damage and it protects the landlord from personal and legal liability. Coverage extends to the rented structure, other private buildings such as a shed or garage, and any personal property that is stored on location or is provided by the landlord for tenant use. Policies can be purchased for structures like condos or buildings that house one to multiple families.
What The Policy Covers
Standard policies include provisions for liability, lost rental income, court charges, and the cost of legal defence. Liability protection covers the landlord during lawsuits related to property damage or bodily injury. This coverage may include a medical expense provision for people who are injured while on the premises. There is additional optional coverage that will protect the landlord in various situations.
Rent and Money
Loss of rental income coverage protects the landlord from financial hardship if the property becomes un-rentable due to a disaster. The landlord gets reimbursed for the loss of rental income, up to the policy maximum, during the time the structure is being repaired or rebuilt. No one can predict when a disaster may occur, so this coverage provides peace of mind.
Some carriers offer optional coverage such as water backup. This particular coverage protects the landlord when damage is caused to the home and its contents due to water backup.
Get Protected for Court Expenses
Being taken to court and claimed against is a very uncomfortable and often confusing situation.
If a landlord is liable for a claim covered under the insurance policy, some carriers will assist with lawyers fees, document preparation costs, and other relevant expenses. Landlords should find carriers that offer 24/7 customer service, so they can always reach someone in the case of a claim, lawsuit, or policy-related emergency.
Rental property insurance provides a level of financial protection that a landlord should not do without. It includes provisions for items such as liability, loss of rental income, legal defense, and court costs. Optional items like water backup coverage and extended policy limits are also available. Knowing that the rented property and he or she are covered provides the landlord with a feeling of security.