Landlord insurance is a policy that protects the landlord from making monetary losses. The policyholder, in this case, is a landlord who owns rental premises. The policy provides cover for the rental building. In some cases, the policy can also cover the property inside the building in addition to the building. This insurance, however, does not cover the tenant’s property that is in the rental building. The cover can thou benefit the tenant if their property is destroyed through ways in which the landlord is held responsible.
Who requires the cover?
This insurance policy is for landlords. It covers the landlord from unprecedented damages. The damages can be caused by fire, lightning, explosion, malicious damage, theft and many other unpredictable causes. The causes vary from one policy to another and are also dependent on the insurance firm. Landlord insurance is however different from landlord emergency cover.
How does it work?
A landlord who takes this cover can make an insurance claim if his/her property is damaged. The landlord is supposed to report to the cover provider in case of damage. The cover provider assesses the damage. If the cause is asserted to be valid, payment is made to the landlord. The amount of payment is dependent on the degree of damage incurred.
Types of covers
There are several types of policies. They vary from one company to the other. The common insurance policies include:
1. Contents insurance
This policy provides cover for the landlord’s belongings that are within the rental premise. Such contents include water tanks and water pipes. It does not, however, protect the tenant’s property.
2. Rent Guarantee insurance
This is a cover that prevents the landlord from being at a financial risk when tenants have difficulties in paying rent. It is an important cover especially if the landlord uses the rent to pay for the mortgage loan used in building the rentals.
3. Liability insurance
This is a policy that protects the landlord from the risk that he/she can be held liable. For instance, a tenant can be injured while climbing the apartment’s staircase. If the staircase is the cause of the injury, the landlord is held liable. This cover protects the landlord from such a scenario
The primary benefit of this insurance is that it acts as security to the landlord in case unprecedented damage occurs. The landlord is also financially covered if tenants default in rent payment.