11 Jan Is landlord insurance necessary?
As a landlord, you have many considerations when it comes to making sure your assets are protected against a loss. A landlord insurance policy can give you peace of mind and cover you against financial losses resulting from a covered claim. Statistical information from the Insurance Information Institute shows that landlords have much more exposure to loss than the typical homeowner. While the costs are higher for a landlord policy than for basic homeowners insurance, the coverage is also significant. Here are some basic coverage options for a l andlord insurance policy:
Property Damage: This protects your property against a covered peril such as fire, theft, vandalism, storm damage and damage caused by tenants.
Liability: Liability coverage protects you against liability claims and lawsuits if someone is injured on your property. It will pay for medical expenses, funeral costs, legal fees, judgment and settlement costs.
Income Protection: This coverage will compensate you if your property is uninhabitable by tenants. This is also known as “rental reimbursement.”
Optional: There are optional endorsements that can be added to the landlord insurance policy, including a personal property endorsement that will cover the apartment furnishings that belong to you, natural disaster insurance and employer liability insurance.
A business insurance professional can help you determine which coverage options are right for you. A word of caution: Don’t wait until you are faced with the unexpected to purchase insurance.
Are you a landlord and thinking of purchasing a real estate investment property? We’d love to consult with you and answer any legal questions you may have. We have decades of experience handling all the legal aspects of commercial and real estate lending. Contact us to schedule a consultation. http://www.barsh-cohen.com/