A secure landlords insurance policy is a top priority for every landlord whether he/she is planning to purchase a property or let it out to a tenant. Unlike the building insurance, that provides coverage exclusively for the building itself, the landlords insurance secures protection for the contents of the building. This means that in the case of a theft, fire or some natural disaster, the loss or damage of all your carpets, furniture, and other belongings will be compensated to a certain extent (depending on the policy type and the limits). If we have a look at the statistics, we shall be stunned at the number of cyclones and storms the United States faces every year. There is practically no better way of protecting your financial condition and home belongings than purchasing a landlords insurance policy that will best suit your requirements and wallet content.
Definitely, the landlords insurance policies differ and offer various levels of protection. The loss of rent is another significant issue to consider when purchasing a certain landlords insurance policy. Most of them are designed to cover the following three common issues concerning the loss of rent:
1. The eviction of tenant
2. Default (when the rental has caused some rental payments with the death of the tenant counted)
3. When the property has become not livable because of a natural disaster or fire
However, there are also certain companies that offer broader protection for their landlords insurance customers. For instance if you are a landlord and happened to take your tenant to court, your insurance company may cover the significant part (or even all) of the expenses.
Cost of Landlords Insurance
Obviously, the main factor affecting the price for a landlords insurance is the level of cover you choose. Yet, the property type, the number of tenants as well as the location of your property play not a small role, either. If the total amount of your belongings appears high, you will have to pay higher premiums. Surely the limit, in this case, will be a high one, too. Therefore, it is crucial to perform an accurate estimation of your property. If have taken security measures such as thief alarm or cameras around the house installed, it is essential to state the information when applying for a landlords insurance. This fact will significantly reduce the premiums.
The employment status of your tenant matters, too. If the tenant is financially provided he is likely to cover all the rental and communal payments. Hence, the possibility of appearing in the court is reduced, either.
So, the mere advice here is, perhaps, checking all the terms and conditions included what is covered and what not when purchasing a landlords insurance plan. Compare the offers of different companies to find the one that best meets your expectations at the cost you can afford.