Insurance is not a new topic for us and for many it is of great importance. There are many types of insurances out there and with many types of insurance schemes. But here we will be talking about the Landlord insurance. For those who are new to the term, you can refer as a protection for the property owner for any types of mishap which might occur.
Land insurance covers payment for property owners from theft, fire damage, unpaid rent, and other types of financial damage. Additionally, it also covers payment if your property is not able to attract tenants and is empty.
For those people who want to earn by renting out their properties, this type of insurance will ensure the owner for any backlash. The advantages of Landlord insurance may be many but there are some disadvantages too. So, here we will talk about that.
1. Recover damage cost for property owner:
There is always some type of costs where the property owner has to pay. But the landlord insurance will cover costs for accidental fire damage, water pipe damage, drainage, and other costs. As insurance will cover them, the property owners can rest easy.
2. Helps with rental payment:
There are times where tenants run away without paying the rent. In such cases, the insurance will pay the property owner whatever loss has occurred to him/her. This helps the owner to save time and money searching the tenants.
3. Covers the rental loss for vacant property:
For unoccupied property, landlord insurance will cover the loss at a certain time limit depending on the insurance company. Basically, you don’t have to worry about not having tenants for a certain time frame. This provides time for an owner to find tenants without bearing any loss.
4. Protection from malicious damage and losses:
There are times where owners might face malicious property damage from tenants. In some cases, tenants will pay for damage while in some they might not. In such cases, Landlord insurances may come in handy.
Now, moving to cons of Landlord property.
Cons of Landlord Insurance:
1. Landlord insurance can be a bit expensive:
For average-income people, having landlord insurance is fairly expensive. Managing the property itself is not an easy task. With the addition of insurance costs, the total expense may be a bit higher.
2. Claiming insurance can be difficult:
You cannot get your claim unless the insurance company gets all the details about the claim. Although all details may be reasonable there are times that gathering details takes a lot of time. Additionally, there may be cases where you might not be able to provide them.
3. Clauses in Insurance can be difficult to understand:
There are many clauses in insurance that are too complicated to understand. You might read them again and again failing to understand the meaning. If you agree to sign a paper without proper understanding then you might face problems later.
With these pros and cons for Landlord insurance, we believe that it will help property owners to make their own decision. Besides, if you do want to have landlord insurance, you should make sure that you read and understand all the terms and policies of the insurance company properly. Choosing what kind of plan and payment is also important. As a result, you might reduce future complications on claiming insurance.