Landlord Insurance is Important
Being a landlord is a big responsibility and a huge financial investment. It makes sense to protect your investment by having landlord insurance. If you are a landlord who owns 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 your burden.
Uses and Benefits
For the most part, this insurance offers financial assistance when damages occur, or legal action is brought by tenants and property developers. There are many financial burdens that can befall a landlord, and some of them are not able to afford out of pocket expenses. Without insurance, a landlord has to pay all kinds of expenses out of pocket. This could eventually cause a landlord to lose all or most of their money.
You might have several properties or one large property. And you might deal with hundreds of tenants at the same time. And with so many people, you will face threats to the function and appearance of your property. Then there are 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 property or filing bankruptcy.
Types of Policies
You will want property damage coverage for sure. This is the main type of coverage 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 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. With insurance, you can get help with expenses. And the insurer will also help determine if you really are at fault.
There really is no reason why a landlord should not have landlord insurance. It is a wise investment.