What is landlord insurance?
A business is defined as providing goods or services in return for payment. As a landlord, you are providing a place to live or conduct business in return for the rent check. Any business is exposed to risk and should have insurance in place to protect the property and assets of the business and its owner.
It is extremely important to the responsibility and accountability you hold to your tenants, your property, any lien holders, and yourself by the financial risk assumed as a landlord. whether you’re renting out an apartment, a home, an office or an entire building, a landlord policy should be put in place to reduce the risk inherent with being a landlord.
Insure you have proper liability insurance in place. A landlord can be held liable for negligence. Make sure your property is maintained and eliminate safety hazards. Fix problems quickly and periodically check your property.
Review your liability limits and insure you put than minimums in place. Discuss the option of adding an umbrella policy if necessary. Understand that liability is not subject to just physical problems with the building. if you have tenants with a dangerous animal or performing dangerous activity, the liability can fall back to the landlord.
Make sure to insure the buildings or buildings at full value. If not, you can be subject to shared loss or coinsurance in the event of a claim. work with your licensed insurance agent to determine which coverage options work for you.
There are way too many reasons to list as to why you should have landlord insurance.
Whether starting with a duplex, or purchasing an office or apartment building, take the exposure to risk seriously from the start. Owning a property and building equity is a great way to start building assets.
Just don’t risk that hard work by not getting landlord insurance.