Many people dream of supplementing their income by owning a rental property but doing so can be fraught with risks. Landlord Insurance helps protect those who rent out a property they own from financial losses. Property owners may assume that a Homeowners policy will cover the property if they rent it out, but that’s generally not the case. Most Homeowners Policies cover only the residence occupied by the owner. Without the right insurance, a lessor may find themselves unprotected in the event of a loss at their rental property.
There are typically three types of coverage available when it comes to Landlord Insurance: Property, Liability and Lost Rental Income.
Property Coverage is as the name implies. It covers losses on the property, fixtures or furnishings due to things such as storm or fire damage, malfunctioning appliances, vandalism or the actions of tenants. Two types of Property Coverage are typically offered: replacement coverage, which covers the cost of replacing items no matter how much you paid originally, or coverage that pays out the actual value of items at the time of damage.
Liability Coverage protects a landlord from losses in the event a tenant or visitor to the property is injured, for example, if someone slips on an icy sidewalk or trips and falls down a set of stairs.
Lost Income Coverage can help protect a landlord from financial losses in the event the rental property becomes uninhabitable due to a covered loss. If there’s a fire or the property needs to be vacated because of a covered loss, Lost Rental Income Coverage can help replace lost income.
In addition, some insurers offer optional coverage that may help replace income in the event a tenant fails to pay their rent or cover losses related to a landlord’s personal property in the unit, such as furniture or carpeting.
WHAT WE DO
The Insurance Pros at Cell Brokerage specialize in providing affordable and customized insurance options and superior service to business owners. We partner with a variety of insurance providers, so you are presented with options that fit your needs (and budget).
Our Insurance Pros work with you to:
- Understand the types of coverage you need
- Match you with a reputable insurance provider
- Identify how much and what type of coverage you want/need
- Bundle your plan with other types of coverage to maximize your savings
At Cell Brokerage, our clients are people, not policies.