Hi, my name is Elizabeth, and I have been running my own business for years. Over the years, I have had a lot of different businesses. I have had home-based businesses, a catering company and several brick-and-mortar shops. Through all of those financial excursions, I have had to buy different types of insurance policies. I have even had to make a few claims. As a result, I have learned all kinds of unusual things about business insurance. If you want to learn about insurance coverage and what your business needs to be protected, take a look at this insurance blog. Thanks for reading and enjoy!
When you own a rental property, you as a landlord have responsibilities that extend beyond just ensuring that your property is occupied. Part of the risks you carry as a landlord is the fact that you will be held liable for a number of things that can go awry on your property. So to protect yourself against such a calamity, here are some of the coverage you will receive when you obtain a landlord insurance policy.
Fair Rental Income Coverage
This coverage is essential in the event that your property suffers damage from a natural weather occurrence or fire, and your tenants can't live in the property during the repair period. The coverage pays you the rent that you are losing due to not having tenants, but the one caveat is that the event that causes your property to be evacuated must be covered under your general policy.
For example, earthquake coverage is typically not a covered loss, so if your property became uninhabitable due to an earthquake, you wouldn't be able to claim a fair rental income coverage. But under a covered loss, fair rental income coverage can last as long as a year.
Liability Coverage
Liability coverage protects you if your tenant hurts himself at your property and decides to sue you for medical bills and for loss of wages due to the fact that he can't work as he recovers. Typically, liability kicks in if damage or injury arises from something in your property, such as a loose step or a wall that crumbles, which directly results in injury, damage or loss for your tenant.
Burglary and Vandalism Coverage
If you are renting a property in which you provide the furniture or appliances, then you need a burglary policy to ensure that you are protected in the event that your tenants suffer a home invasion. You should also double up with a vandalism policy, which will provide protection when your furniture or the walls inside or outside your property are spray painted or defaced in some way.
Flood Insurance
As a property owner, you need to be aware of some major exclusions on your insurance policies such as earthquakes and floods. Very few insurance companies will cover you for floods unless you buy this coverage. So if your roof leaked and rain flooded your rental property, your insurer would cover the roof damage, but wouldn't pay for the flooding damage unless you had flood insurance. In many cases, the damage caused by flooding is far costlier than repairing a leaking roof.
Click here to connect with local insurance providers. Together, you can decide what coverage plan best suits your property.
Share16 April 2015
