Landlord insurance is a policy that every property owner should consider buying. It’s special coverage that takes care of a lot of things that can happen to the property that the person manages. It’s not necessary for a person to purchase this type of insurance, but it can be beneficial to his or her business.
Landlord insurance only overs losses that the landlord might incur. It does not cover anything having to do with the tenants. Tenants would have to buy their own insurance if they wanted to receive protection for the things inside of their rental dwelling.
The policy would cover natural disasters and other mishaps like fires, floods and earthquakes. It would cover damages that may happen to the rental properties because of such disasters. Some policies go so far as also to cover vandalism and property damages that may happen when tenants abuse the rental space. Terrorism is an act that may fall under this type of protection as well.
If anything ever happens to the property, the insured person will have to file a claim that gives as many details as possible about what happened and who may have done the damage. The insurance company will investigate any deductible payments have been made, and then it would make a decision.
Most policies have the same structure when it comes to paying for them and how they actually work. The monthly premium is the amount that the person has to pay just to have access to the policy. It varies depending on the locale and some other factors. The deductible is an amount of money that person may have to pay if a claim arises. Once the person pays the deductible, the insurance company will pay the portion that it promised to pay after an investigation occurs.
The amount of coverage that one can get varies according to the value of the property and the limits that the insurance company places on its policies. Coverage may get into millions of dollars if that property value is that high. An agent can explain more about what’s available and what isn’t.