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Landlord insurance

Landlord insurance. What it really covers?

If you have a house or a flat that is not used, it will be a good idea to rent it out. At the same time, you must clearly understand all the risks you can face. First of all, it is people. They are the most destructive elements of society. In this case, landlord insurance will be of great use. It will protect not only the building but all the things inside.

What it protects?

General policies usually include insurance that covers only the building. Landlord insurance is usually wider. First of all, it protects the housing from weather effects, like hail, hurricanes and fires. It can also include such specific protection as appliances damages and other household things. It is especially important if you have expensive things in the house or flat. It is recommended to make a list or photos of what you are going to ensure.

You will likely buy extra coverage if you want to protect things or just the house from vandalism or just thefts. It will cost some more money, but in case of a misfortune, the insurance company will compensate everything according to the landlord insurance agreement.

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There is another kind of policy available. It can compensate for the price of fixing or even replacing things. It doesn’t really matter what price you paid long before. The calculation will be tied up to the current price. The number of cases is really unlimited that can be included in the policy. It can include such things as:

  • Loss of the property;
  • Fixing modern conveniences;
  • Security appliances fixing.

At the same time, the lender must know that some cases can’t be covered by landlord insurance.

What is not covered?

This question is really important to discuss. This policy doesn’t include losses or damages to the renters’ things. If the renter’s furniture was destroyed by the flood or the fire, the policy won’t cover it. Some other cases are not usually included in the agreement:

  1. Earthquakes;
  2. Volcanoes eruption;
  3. Wars;
  4. Floods;
  5. Water supply system damages.

The price is the main problem in the choice. According to the market, landlord insurance costs a quarter higher than typical house insurance. The price also depends on the sum necessary for fixing and replacing things. The higher the renovation price is, the higher will be the policy price.

There are some ways how to save up on the policy purchase. The price can be reduced if there is no furniture in the house. In this case, you will have to pay only for building insurance. Location is not less important. If the house is located in the territory of constant wars and hurricanes, it can enlarge the price. If the territory is calm and quiet, the landlord insurance price will be lower. If the house or flat has security systems, they will play an important role in the agreement. They usually reduce the price of the policy.

At the same time, the rental period is not less important than other things. If you are planning to rent the property out for a week or two, the price can be included in the house insurance. You won’t need to buy landlord insurance. It is better to consult an agent or the company on the Internet. Nowadays it is not necessary to go to the insurance office. There are lots of aggregators. They let the clients enter the necessary information and send them to the exact company.

A popular thing nowadays is to rent a house for a day or two. In this case, you will probably need special business coverage. Everything depends on the period and the property you have. There are lots of variants of how to protect your property. Everything must be discussed personally with agents.

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