The Importance of Landlord Insurance | Pyramis Company

The Importance of Landlord Insurance

 

We use insurance to protect what’s most valuable to us; this can be our families’ well-being, in the case of life and health insurance, and to guarantee our investments and property, as with property insurance. As the owner of a rental property, it’s important that you consider landlord insurance; these policies are designed with rental property owners in mind. Landlord insurance policies are customizable, and the options each policy will offer you will vary. Landlord insurance at its most basic should cover the value of your property, as well as liability insurance.

Property insurance seeks to protect the insured from loss to their property due to a number of specific perils. Insurance at its most basic will cover the peril of fire, but may not cover vandalism or water damage; it’s important to learn what perils are most likely to occur in the neighborhoods where you own rental property and to get an insurance plan that protects against those perils. The insured property should not just include the dwelling building, but also adjacent relevant buildings, like garages and sheds, and your personal property and appliances required to operate the property.

Your landlord insurance should also cover you for liability claims; liability covers you in the case that a civil suit is filed against you due to damages incurred on your property. These suits can cost thousands in legal fees, and if convicted, there’s no telling how much you may have to pay. A good insurance policy will cover your legal fees, as your insurer has to pay the damages if you are convicted.

There are a plethora of options for landlords to get extra protection for their property and their business. A popular option is rental income insurance, which will pay the landlord the amount of rent lost if damages cause the building to be unlivable. When rent is a primary source of income, this can stave off financial problems that might cause it to be more difficult to get back on your feet. Inflation protection is another useful feature of many policies, which automatically increases the value of your insurance based on your property’s value increasing year after year. There are even insurance policies that cover for changes to building codes, if you need to update your property to stay to code after damages. Your insurance may also be able to cover for the loss of records and the cost of recouping them, and other ancillary damages and loss due to an insured peril.

Choosing the right insurance policy for your needs can be difficult; oftentimes, insurers will also give discounts to entities who buy insurance for multiple properties, as it helps them spread their risk. With over 30 years experience working with property management, Pyramis has developed relationships with top insurers; we can help you find the best insurance policy for your needs, and we may be able to get you a policy for less than if you negotiated alone. Insurance is essential to a safe and successful business in landlording; be sure to get the right coverage!

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Categories: Insurance & Real Estate Law

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