By Dez Duran-Lamanilao
Image source: IQO
Landlord insurance may be an unnecessary expense for some; but managing a business such as renting out a property requires some form of protection and security on the part of the landlord. This is especially true if rent payment has stopped, the property suffers some form of damage caused by the tenant, there are lost earnings or rehousing costs as a result of tenant departure, and there is an incurred liability for accidents in your property that have caused injury, among others.
Landlord Insurance Policy Coverage
A standard landlord insurance policy is comprised of dwelling coverage, loss of rental income and liability coverage. Request for the latest cost estimate of your property especially if you have reconstructed it. For the loss of rental income, assume 12 months of lost rents when crafting your policy needs. For liability coverage, ask for the maximum amount possible. You can also add contents coverage, which protects landlords’ personal property or get a personal umbrella policy for increased liability protection, particularly if you own several units.
Landlord Insurance Estimated Cost
If you want to obtain the best available price for landlord insurance, get quotes from various providers so you have enough options to choose from. The cost will depend on various factors; but expect higher costs for landlord insurance vs. homeowners insurance. The average annual premium starts at around $1,000 and higher, depending on property location, policy cover and insurance provider, to name a few.
As you may already be aware of, being a landlord entails various responsibilities to your tenants. It requires you to effectively manage your property while maximizing your property investment. But remember to be responsible for your own interests first. There are a lot of ways New Horizon Insurance can keep you and your house safe if unforeseen events happen. You can choose from custom packages or if you are not yet sure of what you need, an expert will be available to clarify the options available for your specific needs.