You have an amazing property that you rent out to the people. The rental income covers a major part of your monthly expenses, and you depend on it for your groceries.
You have bought a home insurance policy for the property. One day you find out that the roof of the bathroom has fallen injuring the tenant. You submit a claim to your insurance company for repairs as well as liability coverage. But, your insurance company rejects the claim stating that it is invalid.
Because a standard home insurance policy does not apply to the rental properties and you need to invest in the specific landlord insurance policies to get your property covered. The landlord insurance policies are somewhat similar to the standard policies but are specifically designed to address the perils of the rental properties such as tenant damage.
Every property has its unique requirements, and you should use Landlord insurance comparison to find the best policy that suits your need. Here are some mind-blowing ways in which the landlord insurance policy will cover your property.
1- Liability Coverage
Even though liability coverage is usually part of almost all property insurance policies, it is especially important in the case of rental properties. The tenants who live on your property 24/7. There can also be visitors to your tenants.
So, if something happens to a person on your property, who will be responsible for it? Who will pay for the legal fee if the person sues you for liability damages? Who will pay for the medical aid?
This is where liability coverage kicks in and save you from the lawyers’ fees and medical bills. Your insurance company pays for the liabilities. When you perform Landlord insurance comparison, just make sure that there is enough coverage for it.
2- Tenant Damage
Only very few landlords are lucky enough to leave the rental property in a condition in which they first moved in. Tenant damage is the most common type of abuse to the rental properties which is caused by misuse, lack of cleanliness and lack of proper maintenance.
Landlords have to undertake various repairs and replacements to bring the property to restore the property. Who pays for the damage? Your landlord insurance policy does when you have tenant damage as part of the plan. All you have to do is to file a claim and pay for the excess. You can find the policies that offer tenant damage at Ensurancecompare.com
3- Loss of Rent Income
If you depend on the rental income to run your home, the loss of it can be too much to bear. Loss of the rental income can put you in financial crisis and can even make you go bankrupt.
So, the landlord insurance policy with coverage for loss of rental income can be your best bait to survive through these months. Whether it because that your property has become inhabitable or you are between finding a new tenant, some or all of your rental income can be claimed.
4- Comprehensive Property Damage
Apart from these rental property specific damages, your property also needs comprehensive coverage against the weather and wear and tear.