It may seem like an elementary question, but we have seen many homeowner’s insurance policies attempting to cover a landlord’s rental property. The major problem with this? An insurance company is not expecting a claim involving a tenant. If that claim arises, the carrier can very easily deny the claim and you, as the landlord, are stuck coming out of pocket. The same is true if a legal issue arises where the tenant is claiming negligence by the landlord. This property should be earning you money, not costing you money. To protect the landlord and the physical structure, landlord insurance (also known as a dwelling fire policy) is a must.
Some common claims for landlord insurance:
- Tenant starts a fire, which causes damage to the property.
- Tenant sues landlord on the grounds of “wrongful eviction.”
- Tenant has a friend over… friend slips and falls… friend sues tenant and landlord.
- A storm flattens the building and it takes 10 months to rebuild. Loss of rental income is a key coverage here.
- Tenant vandalizes the property.
As a landlord, having correct insurance is pivotal in protecting your asset and your financial standing. Request a review of your current policy here.