Property owners are always worried about the protection of their property which has been leased out. Their concern is not baseless as the property which has been rented out can be damaged due to the negligent attitude of any tenant. However, one can cover all such losses by purchasing suitable landlords insurance. This insurance is meant for landlords who have rented out their property for earning some income. Most people confuse this coverage with home insurance. Home Insurance is also meant to protect the property but it is different from this cover. Home Insurance is for such property where the owner lives himself. The insurance for protecting landlord is used for property which is occupied by tenants. You can easily recover from any loss or damage made to the property if it is covered by suitable insurance coverage.
Before buying the ‘landlords insurance’, it is advised to check the types of policies available, what all is covered under them and the payment options.
The types of insurance that one will find are
Tenant content insurance
Tenant default
Loss of rent insurance
It is better to compare the quotes of different insurance providers before selecting one. Look for as many quotes as possible and speak to the insurance advisers so that you can understand all the factors which are important to be considered while working out the cost of the policy.
There are many ways of buying insurance. You can either visit the office of an insurance company or search online for quotes. Make sure to compare the type of coverage with the price while searching for a suitable policy. In general, a suitable policy covers the damage to the property caused by natural calamities or manmade causes. Usually, a typical ‘landlords insurance policy’ also provides liability coverage to the landlord in case the tenant is injured on the property.
The type of tenant is also a factor which is considered while fixing the price of the policy. So, it is important to think about it while renting out the property. It is possible to get a good deal for insurance if the tenant is responsible and has been in the property for a long time. One can also avail discount or a ‘no claim bonus’ if there have been no claims made in the recent past by the insured person. Another factor to be considered while fixing the price is the location of the property. Landlords insurance is usually expensive in big cities as compared to smaller towns because the cost of property in cities is higher, so the building cost component of the insurance is higher.
So, research and select the best policy to gain peace of mind.
