Landlord Insurance Explained
Landlords own property that they rent to other people. A landlord might own an apartment building or a house. A landlord can be an individual or a business or corporation. Landlord insurance protects the interests of individuals who collect rent money from tenants. This insurance serves different purposes, and can be used to fund major repairs for damage done by weather or tenants.
As the name suggests, this coverage benefits landlords who own rental property. A landlord is the person, or business entity, who holds the title or deed to such real estate. A person who is not a landlord cannot purchase this insurance.
How it Works
First, the landlord must qualify for coverage. Once coverage is in place, the landlord files a claim when a covered incident takes place. The spouse or relatives of the landlord are not allowed to use any funds specifically allocated to a person who owns an insured piece of real estate.
Types of Coverage
This insurance protects the interior and exterior of an insured property. That means that damage inside the building is covered, as well as damage that occurs outside the building. If the building is an insured home, then detachable items such as lighting fixtures and appliances can also be covered.
There are many perils associated with renting property to other people. Thousands of things can go wrong. The best protection is for a landlord to have insurance coverage. A landlord depends on monthly rent as a major source of income. If tenants leave before a lease expires, then the landlord is going to lose significant sums of money. Tenants can also cause damage, and then there are other disasters. It’s smart for a landlord to cover their investment.