When it comes to typical property insurance, it is assumed that the person taking out the policy actually resides on the premises. However with landlords, you rarely actually live in the property that you are renting out. As such, there are different policies that would be pertinent for your building that you may not consider if you were a renter. It is important to ensure that you insurance cover provides protection for a number of these things as making the mistake it is included in your package could lead to disappointment down the road. Here are some of the different policies to consider for your landlord insurance.
This type of cover is one of the most basic policies that you can take out for your premises. Whether you already fully own the building or are still paying a mortgage for the premises, you require dwelling coverage to ensure that you have protection in the event of any structural damage that the building may acquire. Dwellings insurance can also provide protection in the event of damage of other systems in the building such as the plumbing, gas system, electrical wiring and more.
Water damage insurance
Another policy to consider as a landlord would be water damage protection for your property. A common misconception that people have is that water damage would only be pertinent in the event of a natural flood. As such, they may overlook this type of cover. The truth of the matter though is that simple plumbing problems that are not addressed could lead to flooding in all the units in the building. You will also need this type of policy in the event of any sewer line problems and more.
A contents policy will typically cover any personal property that is on the property. However, this is not something that all landlords will subscribe too. Some have the mentality that their tenants's property and contents in the building are their own responsibility and the landlord does not need to ensure that they remain safe and can be compensated in the event of damage. This is all well and good. However, if you were renting out a furnished building, then contents insurance would be pertinent for your belongings. This type of insurance will cover anything and everything that you include ranging from the draperies to carpets on the property. It should be noted though that you should explain to your tenants what falls under the contents insurance and if they would have to take out policies for their other personal belongings.
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