6 Tips for Comparing Landlord Insurance Providers

Comparing Landlord Insurance

If you own rental property, you need insurance designed specifically for landlords. As a landlord, you have many responsibilities. You must protect your property from a myriad of expected and unexpected situations and protect your tenants as well.

Standard home insurance policies don’t often provide the specific coverage a landlord needs. So choosing the right insurance to protect your investments is critical.

You want to be prepared when the unpredictable happens. Of course, you want to compare quotes when comparing landlord insurance. But the price isn’t all that matters.

There are a number of other factors you should consider carefully in order to choose a policy tailor-made to cover your investments. Let’s take a look.

Comparing Landlord Insurance: Special Coverage

Lots of insurance firms offer specialized landlord insurance. Buyer beware. These policies can vary quite a bit in the extent and quality of coverage as well as the premiums involved.

You want to consider this: the cheapest policy may not always be best. Keep in mind as you are comparing landlord insurance that a good policy will cover the structure, your liability, and loss of rental income.

In addition, you can add on other types of coverage depending on your property and need. Here are a few areas of coverage to consider as you are comparing landlord insurance.

Building Insurance

Your property is a major investment and asset. You definitely want a policy with building insurance that protects the building’s structure, fixtures, and fittings in case of damage due to fire, storms, or flood.

Your lender will probably insist you have this type of coverage and will probably offer it to you.

Although you may be required to have the coverage, you are under no obligation to purchase it from your bank or lender. You may find a better policy and price as you are comparing landlord insurance.

The Sum Insured

Be sure of the sum insured for any policy. This is the maximum amount you can claim if your property is destroyed. Be careful here. If the sum is too small, there could possibly be an insurance shortfall when you try to make a claim.

However, if the sum is too big, you could be paying too much. The sum is meant to cover the rebuild of your property, not the full market value. So it’s a good idea to have a professional assess the property so you know the true rebuild cost.

Your insurer can also estimate the sum based on the type of property, the age of the property, and other relevant factors. Some insurers even offer unlimited coverage to eliminate this concern completely.

Coverage For Malicious Damage

Of course, you want tenants you can trust, but any landlord knows that’s not always the case.

Disgruntled tenants can do serious damage to your property in a short amount of time. They can then vanish without a trace leaving you to clean up their mess and repair the damage.

A policy that covers malicious damage is always a good idea. And in our litigious society, some people will take advantage any way they can. So it’s a good idea to have any liability you may face due to an injured tenant covered as well.

Content Insurance

As you are comparing landlord insurance, keep in mind that content coverage is needed if you are letting furnished property. You simply select an adequate sum based on the vale of the property contents.

Make sure the insurance is on a new for old content basis, and don’t forget to add coverage for accidental damage to contents.

Even if there’s no furniture on the property, you may still want to consider coverage for any curtains, appliances, and fixtures on the property. You don’t want to lose any investment you put into your property.

It helps to have peace of mind knowing if you do incur damage, even a small amount, it’s covered.

Loss Of Rental Income

It would be great if that rent poured in every month without fail. As a landlord, that doesn’t always happen – especially if you own more than one property.

So as you are comparing landlord insurance, it’s very important to choose a policy that covers loss of rent.

With this coverage, you can make a claim if the property is damaged by a fire or flood and the property is uninhabitable for a time.

The loss of rent coverage is essential if you owe a big mortgage on the property and need the rental income to pay it month after month.

Some loss of rental income policies will cover an alternative accommodation for tenants who must move due to damage. This could help keep them happy in difficult circumstances.

Getting Your Questions Answered

As a landlord, you know unexpected things happen. And anyone who rents out property to others definitely needs landlord insurance. It makes good financial sense.

What will you do if there’s a natural disaster and you can’t afford the extensive repairs needed? What if your once reliable tenant suddenly stops paying rent or leaves you with considerable property damage?

If you rely on monthly rental income, you could end up in a financial struggle when that rent stops coming in no matter the reason. Landlord insurance is just for this purpose.

The most important thing to remember as you are looking for and comparing landlord insurance is to do your research. Know what you want and find a reputable insurance provider.

If you have questions or aren’t sure of exactly what type of landlord insurance you need, we can and would love to help. Contact us today. You deserve peace of mind knowing you have the right insurance coverage for your property needs.