As a landlord, you need to know if your insurance policy is tailored to cover your specific needs. Your standard homeowner's policy might not be designed to cover your rental property.
Here's why:
A homeowner's policy does not automatically have coverage for a tenant. The carrier is not expecting a claim involving a tenant and can easily deny the claim, leaving you stuck paying out of pocket. The same is true if a legal issue arises where the tenant is claiming negligence by the landlord.
Keep in mind all the things that can go wrong involving a tenant. Your policy needs specific coverage for those things.
Here are some common claims for landlord insurance:
- Tenant starts a fire, causing damage to the property.
- Tenant sues landlord on the grounds of “wrongful eviction.”
- Tenant has a guest on property who gets hurt; the guest sues.
- A storm flattens the building and it takes time to rebuild, resulting in a loss of rental income.
- Tenant vandalizes the property.
This property should be earning you money, not costing you money.
To protect the landlord and the physical structure, landlord insurance (also known as a dwelling fire policy) is a must. Having correct insurance is pivotal in protecting your asset and your financial standing.
Request a review of your current policy here.