Everyone is planning to invest in something new which will give them good returns in this New Year. It is a popular saying “The best investment on the land island” and these days everyone wants to invest in land as it is going to bring them lifelong income. Renting the properties has become a trend and these days homeowners don’t themselves reside in the house they own. The important question is will the tenant take care of the property as you do?
Here is something which can bring peace of mind to you that is landlord insurance. It covers all the risks that an individual might face while renting out his property. You can find the cheapest home insurance for you with the help of kin.com. In case your rental units become uninhabitable because of mishaps then this insurance will provide you with rental loss also.
Things which are covered in Landlord Insurance
Your insurer must give you the following options when you are applying for landlord insurance:
· Property damage: This will cover damage done to the structure of the buildings. In case there is fire, theft, storm or vandalism or tenant damage it helps you to a great extent. If your entire property is under loss then the landlord insurance policy will cover replacement costs of the entire property.
· Cover Against Loss of Income: In case your property becomes uninhabitable due to an insured loss like storm or fire. The rental reimbursement will prevent you from losing rental income.
· Liability Insurance: This will help you cover the expenses, claims, and lawsuits associated with third-person bodily injured because of your property. For example, if you have been told several times to fix a rusty pipe that has destroyed the tenant’s valuable documents. The tenant will file a liability claim against you, the landlord insurancewill cover the expenses which occur in such cases.
· Add on Coverage: One can include adding on coverage such as natural disaster insurance, employer liability insurance, rent guarantee insurance, and landlord content insurance. One can customize these covers as per his needs.
Benefits of Rental Insurance
· Landlord insurance will protect you from financial losses resulting from natural disasters, injuries, accidents, and other liability issues.
· It will offer reimbursement for the loss of rent.
· Repairs and replacements will be covered under landlord insurance.
· If you don’t occupy your property and your tenant damages your property. The losses which have occurred one has to pay from his pocket. It is a costly affair and such extra costs can be saved by having landlord insurance.
· Normal insurance will not cover the loss and damage that has taken place on your rental property. It won’t cover liability claims for you.
What is the Cost of Landlord Insurance?
There are various factors which affect the premium of the landlord insurance as discussed below:
- Size of the property
- Geographical location and risks in the area
- Number of rental units
- Installed systems such as burglar alarms
- Type and coverage amount offered by a landlord insurance policy.
Check out QuoteRadar landlord insurance to get a free landlord insurance quote.
Why does a landlord need landlord cover insurance?
There are various things involved in the working of landlord insurance,
· Damaged Property: In case a fire accident takes place in the house resulting in great damage then landlord insurance will pay for rebuilding and repairs of the house. Property damage coverage doesn’t have set limits and you must be informed about the coverage limits. You need to pay the insurer the deductible amount before applying for reimbursement and making a claim.
· Loss of Rental Income: If your property got damaged due to lightning strike then repairing the property may take some time. The insurance will compensate for the rent that you will lose because of repairs which are taking place on your premises.
· Tenant Damage: Damages caused by tenants on your property are covered under such insurance policies. One can secure a rental deposit when the tenant signs a rental agreement with you.
· Liability of Landlord: Let’s say a tenant or a visitor got injured when he came to see your property. Chances are there due to injury third party might file a lawsuit against you. The liability cover will protect you from the expenses that you gave to pay when such incidents take place.
How to claim the landlord insurance on tax?
Every the insurance company has mentioned the claim process on the policy document. However, there are certain guidelines for filing claims under a landlord insurance policy,
· Inform the insurance company by calling them on the helpline number.
· After the authentication of the claim, it will be registered with the claim department of the insurance firm.
· A surveyor will be appointed by the insurance firm to tell whether the claim is authentic or not.
· The surveyor provides the final report to the company after taking the survey.
· Surveyor is responsible for providing relevant documents and their scrutiny.
· In case of approval, the claim is settled and the landlord is given the compensation.
Exclusions under landlord insurance cover
The cases which are not claimed are known as exclusion. Here is the list of exclusions in case of landlord insurance policy:
· Property damage caused by war, invasion or civil war, nuclear risks.
· Loss or damage to the property due to regular use or spoiling.
· Damage to the property caused by electronic equipment due to overrunning excess pressure.
Note: This list is exhaustive and points may change depending on the insurance provider.
A person purchases a house to generate long term income out of it. One can get cheap homeowners insurance for his house after searching it online or getting recommendations from friends. A landlord spends a lot of money on the house which he purchased from his hard-earned money. If any problem arises the entire responsibility comes on his shoulders. It is better to get a claim on landlord insurance as it will keep the house in good condition and will prevent you from spending hard-earned money in case of adversities. On this New Year, it is better to get something for your house which keeps you and your family safe and sound.