Being a landlord is a big responsibility and a huge financial investment. It just makes sense to protect your investment by having landlord insurance. If you own residential buildings such as apartment complexes, condominiums and townhouses, then you need landlord insurance. You have to collect rent, make repairs, settle disputes and more, so having insurance will ease some of that burden.
Uses and Benefits
There are many financial burdens that can befall a landlord, and without insurance, you would have to pay all kinds of expenses out-of-pocket. For the most part, landlord insurance offers financial assistance when damage occurs or when legal action is brought by tenants and property developers.
You may have several properties or one large property, and you might deal with hundreds of tenants at the same time. With so many people, you will face damage which threatens the function and appearance of your property. Then there are always tenants who lag behind on their payments. All of these risks can be lessened with landlord insurance.
If you have insurance, you will be prepared to handle claims without worrying about losing your property or filing bankruptcy.
Types of Policies
You will certainly want property damage coverage, which is the main type of policy needed by landlords. A residential building must adhere to health and safety standards, according to local property laws. And even with regular maintenance, you face the risks of reckless tenants, incompetent repairmen, trespassers and natural disasters. Landlord insurance can help you face all these perils by providing financial assistance during your time of need.
Liability insurance is highly recommended, as well. As a landlord, you can be blamed for any slip and fall that occurs on the property. And if you are found to be negligent, you will have to pay damages.
There really is no valid reason why a landlord wouldn’t need landlord insurance. Rentals properties represent a significant investment. Properly protecting that investment just makes good sense.