Landlords often require their renters to have a rental insurance policy. These policies protect the property that belongs to the renter. But what about the rest of the building? As the landlord, you need to have a number of policies in place to protect yourself and your investment. These policies go beyond the scope of rental insurance and cover both the building and your bank account, just in case of liability.
So, what does your landlord insurance policy really cover? Here’s a breakdown of what you want to know.
Property Insurance
Among the many insurance policies that you, as a landlord, should have is property insurance. These policies cover the building or buildings on the plot of land, as well as the parking lot, sidewalk, driveway, garage, green space, and any other outbuildings. If something should damage any of these structures, items, or the trees and shrubs in the green space, your property insurance policy should cover the costs of removal and repair.
Of course, not everything inside of each apartment or home is covered by your landlord property insurance. The coverage tends to include the outer walls, the common spaces, and the plumbing. The contents of the building owned by the renters are not covered.
Liability and Umbrella Insurance
Liability insurance, as well as umbrella liability insurance, are two different policies designed to protect you from anything that might happen on the property or in the common spaces of the building.
For example, if your tenant or one of their guests trip and fall over a rug in the building’s lobby or slip on a wet strip of flooring, then they have the right to sue you, as the landlord, to recoup things like medical expenses, lost wages due to missed days of work, or any other costs related to the incident.
Rather than pay for these things out of pocket, you need to turn to your liability insurance. Umbrella insurance works in a comparable manner, only it covers expenses above and beyond the scope of the standard liability insurance plan.
Specialty Policies
In addition to the policies already mentioned here, there are some specialty policies that your property might qualify for. These include flood insurance and hurricane insurance. Since property insurance doesn’t cover flooding that comes from outside of the home (from the weather instead of broken pipes), flood insurance is a crucial addition. Hurricane insurance often covers damage to the property brought about by high windstorms.
Why You Need Insurance as a Landlord
There are many unknowns in life, and you don’t want your rental business to suffer because of them. That’s why you need to have the right types of insurance to cover your property.
Have Questions? Contact Charlotte Insurance
Want to learn more about the insurance that you have on your rental apartment complex or house? Do you need a specialty insurance policy to provide extra coverage? Contact Charlotte Insurance. Our agents can explore and explain all available options and put together the insurance coverage plan you need.