What Is Landlord Insurance?

​Are you renting out a property you own? It’s either a house, apartment, or vacation cottage; you’ll likely need landlord insurance, not homeowners. Why is that? Continue reading to know more!

Homeowner’s insurance will not pay for any damages or dwelling coverage of your tenants because you do not occupy the space. Nonetheless, what is landlord insurance?

Definition Of  Landlord Insurance
Landlord insurance covers someone who’s renting out a space they own. The insurance coverages include three aspects;

1. Property damage
   If the property suffers from damages on its furnishings, property damages will offer replacement costs instead of actual cash value. The damages may be from a natural disaster, fire, or vandalism.
2. Lost Rental Income/Rental Default Insurance
   Another coverage is for lost rental income. The insurer will provide rental coverage if the real estate’s condition is uninhabitable due to termites, mold, and infestation.
3. Liability
   The third is liability insurance. The coverage is for legal and medical expenses if a tenant meets an accident while maintenance is ongoing.

Additional Coverage
There are also other coverages which can help you save money in the future.

1. Emergency coverage
   You’ll have to travel to the property if a tenant gets locked inside the house or some fixes need attention. Emergency coverage will cover all costs you spent to get to the property.
2. Guaranteed income insurance
   If a tenant does not pay rent, guaranteed income will ensure that the landlord.
3. Flood insurance
   If the apartment you own is in a flood zone area, it’s ideal to purchase this insurance.
4. Additional construction insurance
   After a building has been damaged, additional construction will cover the cost if you need to bring it up.

Conclusion
Putting up real estate or property for rent is a risk you take. To protect your business and source of income, you’ll need landlord insurance. 

At Hayek Insurance, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (805) 496-8835. Get your free quote today by CLICKING HERE.