The Benefits of Landlord Insurance
Owning rental property is a great way to build long-term wealth. But when you’re dealing with tenants, several things can go wrong. And you can also have problems with your property. This is why landlord insurance is a wise investment for all landlords.
One of the best ways to protect your investment is with a landlord insurance policy. The policy provides a variety of coverage types that help to protect you and your investment. Here are just a few of the advantages of coverage.
1. Rent Loss
When you rent to tenants, you rely on their rent to help pay various expenses. But sometimes the property may become unlivable and tenants must go. So rent loss insurance helps you financially when you’ve lost tenants. It provides cash flow in the event your property is temporarily out of service due to a fire or other casualty.
This coverage provides financial assistance should a tenant fail to pay rent. Since you rely on rent, it can be devastating to lose that income. With rent guarantee, you’ll receive payment to temporarily make up the lost income.
Liability is a huge issue when you’re a landlord. You could be found liable for all types of incidents that occur on your property. This means your property and all your assets are potentially at risk. But with liability coverage, your insurer will help with the costs associated with lawsuits.
If you’re a landlord, then you need landlord insurance. Ideally, you’ll get coverage before renting to your first tenant.