Preparing to rent out a building involves a lot of planning, and finding the right insurance will protect against the unexpected. Landlord insurance offers a special type of policy for a person who is renting out a building that they are not living in. It will protect the building and offer liability protection for the landlord. This is important coverage for anybody who is planning on becoming a landlord.
This policy will cover the physical building, and it will pay to rebuild if it is completely destroyed due to a covered loss. Additionally, if the home becomes so damaged that the tenants are not able to live there, the insurance company will cover the money that is lost in rent. For landlords, this can help to protect them against losing a serious amount of their income.
However, it is important to remember that landlord insurance will not cover the belongings of the tenant living in the home. The tenant will need to contact an insurance agent and get their own renter's policy to cover their belongings. The insurance for the landlord will only cover the liability of the landlord and the building that they own.
Remember, anything can happen, and no landlord wants to get stuck dealing with their own repairs. Pipes can burst, fires can start and weather can do some serious damage. An insurance policy will make sure that landlords have the protection and peace of mind that they need.
Liability is also extremely important, as landlords don't want to face serious financial problems from their rental dwelling. If a tenant is seriously injured while they are in the home, they may turn around and sure their landlord. In this case, the insurance company would represent the the landlord and pay the damages that the judge orders up to the policy limits. This gives landlords the peace of mind that they need to rent out a home and not worry about the unexpected.