As a landlord it is of vital importance for you to have an insurance policy. But these policies usually contain holes, which mean you are not rightly protected against the risks you face as a landlord.
While selecting a landlord insurance policy, you need to make sure that it watches out for all your needs. For that purpose, you can also hire an insurance broker, to provide you sufficient information and guide you towards a beneficial insurance policy.
Landlord insurance provides safety to you and your house occupants. Standard insurance policies for your property do not cover most of requirements as a landlord. Mostly, you have to take one of the special policies for landlords, which is different than tenants insurance.
Though, as a landlord it is not a legal requirement for you to get such insurance policy. But it is for your own benefit that you do so.
Most of the times, mortgage lender also demands to landlords to get an insurance policy before handing over property to the tenants. Landlord insurance is one of the must-haves for investment assets owners.
One of the benefits of this insurance is, that it covers the amount lost when the tenants or their friends or guests are involved in any sort of theft or break in. This insurance will cover all the cost and you don’t need to worry about it at all.
Besides, if your tenants are destructive and they damage your property, this insurance will cover your damage cost. All the damage they have done to your property would be covered through your insurance money.
It is one of the nightmares for a landlord if he has to suffer loss of the rent. For any reason the tenants can no longer live at your property and you as landlord are unable to get new ones. Just imagine, how disastrous it would be.
As mentioned above, the landlord insurance is quite beneficial for landlords. But getting a right insurance policy is not an easy task. Even if you have an insurance policy, you can’t be sure whether it is right for you or not. Unless, you watch out the following reason.
If your insurance policy does not cover following costs, it means it is broken and need further amendments.
It does not covers the cost of renting lawsuits:
Mostly, landlord insurance doesn’t provide cover for discrimination in renting lawsuits. Most of the times the landlords do not intend to discriminate against anyone but still have to face lawsuits.
If your insurance policy does not cover the cost of discrimination in renting lawsuits, it means it is broken and you need to fix it.
Damages by Disasters:
If any accident or disaster occurs, and your property is damaged, your insurance policy ought to cover the cost. But, most of the times, the insurance companies take advantage of the loopholes.
These companies refuse to cover the cost of damage during natural calamities, for example, floods, tornadoes etc. usually, when you decide your insurance policy, you do not consider these minute details and often suppose that these damages are also covered by your insurance policy.
But when such natural disasters damage your property, and your insurance company refuses to pay you for damage, then you realize that you have chosen a broken policy.
Before taking any policy make sure it also provides you inflation protection. Because, most the insurance policies do not cover the inflation cost. If it does not provide inflation protection, it means, this is not the right policy for you.
Also keep in mind that having a broken insurance policy is not and end of the road for you.
How to fix it?
If your insurance policy is broken, you do not need to be disappointed or lose hope, because, where there is will there is a way. If your policy is flawed, these flaws can be easily removed or fixed. You need to make sure that you take following steps.
Hire an insurance broker:
Start the hunt for the right policy by contacting some company which deals in insurances, you can also contact an insurance agents that retails policies for business and commercial activities.
Read insurance policy carefully:
Before finalizing your insurance policy, read it carefully. There are minute details you might miss if you don’t read carefully. The details you left out might be a major source of headache for you, in future.
Before deciding your insurance policy, compare the quotes and offered benefits of different companies. After calculating the pros and cons of different polices, go for the option which provides you maximum benefit.