Providing people with places to live is a big responsibility, and making sure that you are fully covered is key to success. Landlord insurance is designed to accommodate and cover the unique risks that landlords face as they provide property for people to rent.
It isn’t a good idea to go without landlord insurance, but understanding it can be a challenge. In our last blog, we discussed some landlord insurance basics, including commonly-asked questions and the different insurance levels to choose from. In today, blog, we want to dig a little deeper and explore just what kind of protection landlord insurance provides and share some advice.
Areas Covered By Landlord Insurance
Loss of Rental Income
If a unit becomes uninhabitable, this part of landlord insurance will cover the income you would be pulling in if the unit were available. Keep in mind that this insurance won’t cover the loss of income due to vacancy or eviction. There must be physical damage that your insurance can cover. While the damage is being repaired, loss of rental income insurance will keep the money coming in.
When you put property into the hands of tenants, you have limited control over what happens. If things go south, landlord insurance can give you financial support.
- Legal counsel costs. There are many situations that can have you in court when you are a landlord. As we all know, legal expenses add up very quickly. Landlord insurance can make it possible for you to access legal counsel without major financial difficulty.
- Personal injury. This is a big category. Tenants can make legal claims against landlords for many different reasons. It could be illegal eviction, wrongful entry, deposit disputes, or an invasion of privacy. You can also be sued for medical costs if a tenant is injured to do a condition that they believe is your fault. Lastly, if a tenant experiences property damage as the result of something you didn’t repair, the tenant can sue you for replacement costs. Make sure you are covered, and you’ll be able to weather any legal storm that blows through.
Optional Coverage Options
Landlord insurance has been around awhile, and in that time, many creative policies have been added in order to support landlords no matter what challenges they encounter. You don’t have to purchase these coverage options, but they are worth considering.
- This one isn’t offered very often because mold isn’t always visible. It can cause serious health problems, and juries have awarded large damages to tenants exposed to mold. Make sure your tenants understand the importance of reporting any leaks to you right away so mold doesn’t have a chance to get started.
- Appliances always break down, but this policy covers emergency repairs on air conditioners, furnaces, hot water heaters, and other important appliances.
Acts of Nature
- These are important, but they change depending on which region you’re in. It can be a very good idea to discuss your options with your insurance agent to ensure you make the right decision. For instance, landlords in Florida may not want to invest in hurricane insurance; it is so expensive, it’s better to just keep that money to replace the dwelling should a hurricane damage it.
- This takes general coverage and makes it more specific. It is a must if you’re renting out a furnished dwelling, but it can also be very valuable if you include personal tools or expensive appliances. This insurance also covers curtains, carpets, and contents within outbuildings. The policy will not cover any of your tenants’ belongings, so make sure they all have their own renter’s insurance.
Turn to Broker One Rentals
At Broker One Rentals, we pride ourselves on making life easy for Wyoming landlords. We do this by providing assistance with every part of the process. We will market your property and maintain a pipeline of interested tenants. Not only that, we will screen the tenants to ensure that they will add value to your property. We understand how important your property is to your ability to make a living, and we are here to make sure your tenants take care of your property correctly. We also have connections with contractors and can get you good prices on repairs and other work. Contact us today!