Landlord insurance is coverage for people who make money from rental properties. If you own an apartment building, houses, or some other type of rental property, you’re officially a landlord. There are several risks that come with being a landlord. And landlord insurance helps protect you against some of those risks.
Landlord insurance provides coverage for property damage. Tenants and their visitors can cause thousands of dollars worth of damage. You might not even know who is responsible, but you’re still responsible for making repairs. With this coverage, you’ll get help making repairs or replacements to damaged property.
Loss of Income
When your income depends on rent, losing that rent can cause big problems. Landlord insurance has a loss of income option that pays you for a portion of your lost income. Lost income is caused by a covered event that makes your apartment or property temporarily unlivable.
If a tenant or visitor is hurt on your property, they can possibly sue you for liability. And if the court decides you’re at fault for the injury, you’ll have to pay damages as ordered by the court. Expenses related to liability cases can be pretty high. But with landlord insurance, you’ll get help with legal fees and paying damages.
Your Assets are at Risk
Your assets are at risk each day you go without landlord insurance. If a mishap occurs, you’ll have to pay for the expense out of pocket. That means you could possibly end up selling assets to pay for repairs, court costs, or damages. Landlord insurance provides a safety net that keeps your assets safe.