To fully manage your rental property, landlord insurance is the sure way to cover the building, whether it's a studio apartment or four-bedroom house, as well as protect you from liability. Things may seem to be running smoothly when your tenants are paying rent on time, but when a tornado destroys the roof of your rental house, or a visitor suffers an injury inside your rental apartment, your fortunes can change quickly. Fortunately, landlord liability insurance is on your side—and isn't overly expensive.
Landlord Insurance for the Property
At the very least, purchase property protection that covers the most common perils, like fire, wind events, and burglary. Your policy will spell out exactly which perils are covered, and if you can afford to cover more, it's wise to do so. Look for ways to save; things such as new smoke alarms and deadbolt locks might save you 15% or more. Your landlord insurance should also cover any personal property you keep at the house for your tenants to use, as well as additional structures like storage sheds.
There are differences in policies for a condo and ones for a single-family home, but you can shop around to see who offers the right coverage for your needs.
Lost Rental Income
Landlord insurance will also replace lost rental income—sometimes for as many as 12 months. This can be extremely valuable in the case of a hurricane or fire. You can also replace income lost due to floodwater damage, but keep in mind that a flood policy is separate from your standard property policy. If the cost seems too high, raise your deductible to a manageable amount. This may lower your premium by 25%.
On-Site Injuries and Landlord Liability Insurance
If there's one thing you can count on, it's that people don't want to take responsibility for something bad that happens—not if they think they can blame someone else, anyway. Your tenants could get hurt inside the property, one of their guests could slip and fall, or visitors touring a property for rent might get hurt. Landlord liability insurance protects you in all these instances. But that's not all. You should also look into landlord liability insurance for problems such as libel, slander, and discrimination. You may be doing nothing more than carefully screening potential tenants, but they may claim otherwise.
Obviously, the more coverage you buy, the higher your premium will be. But if you don't want to pay for things like lawyers and court fees in a flimsy discrimination suit, you'll want full landlord liability insurance. For all the coverage you need, shopping around is the best way to save a lot of money. If you let NetQuote.com compare quotes for you, the best rates will come back in minutes. You can see all the quotes side by side, and then make your decision. Landlord insurance is the smart and affordable way to manage all your interests.
See how much you could save today on your insurance. Get your free business insurance quotes today!