Landlords Insurance coverage is your friend!

Yes, it’s true, insurance companies make money from you as a landlord… many times on something you will never see a payout from.  The insurance companies employ actuaries to make an assessment on how risky a particular situation is and to help them understand what an associated business model would need to look like in order for them to be profitable while still providing a valuable service. Sooooo….. insurance companies are in business to make money…. that’s not a bad thing.  The important thing here to realize is that by stepping into this “profession” you’re taking on risk.  Many small time landlords (the simple landlords like you and I) might be stretched for money and not think that Landlord’s insurance coverage is worth while.  BELIEVE ME, even though the insurance companies are in it to make money it’s still worth it for you to pay them my friend!

Beyond the liability issues we’ve discussed previously, you need need to understand that one unforeseen issue that you aren’t prepared for could tank your blossoming business and take the investment you’ve made in your home along with it.  Buying a home is a huge investment and renting it out can be risky, not being prepared for some risk you hadn’t thought about could put your financial future at stake.  Do the smart thing and speak with a insurance agent that you or your a friend trusts about the right amount of insurance coverage for your rental property.  I’ve included a checklist below of things you should think about asking your insurance agent about with respect to landlords insurance coverage that they might offer.

Landlords – Insurance Covers some of the following liabilities (speak with a real estate attorney or insurance broker to understand the specifics for your situation):

  1. Tenant Injuries
  2. Mold
  3. Secondhand Smoke
  4. Fires
  5. Pool / Spa Injuries
  6. Crime on Premises
  7. Other Environmental Hazards
  8. Negligence Injuries
  9. Dog Bites

Landlord’s Insurance Coverage

Insurance is a tool used to mitigate risk against some form of uncertainty.  Insurance is typically offered in exchange for smaller regular payments.  The contract that is entered into by both the insured & the insurer is known as an insurance policy.

Liability

Liability means being bound and obligated to pay legal debts.  A person that is legally and financially responsible for something is assumed legally liable.  Liability is an issue of both civil and criminal law – as defined by Wikipedia.

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One Response to Landlords Insurance coverage is your friend!

  1. Pingback: Geico Renters Insurance [Insurance Providers that Rock!] | | Simple LandlordSimple Landlord

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