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Landlord Insurance

Real estate values have exploded (with some plateaus of temporary market retrenchment) after a post-crash recession. This, and the always available quantity of foreclosed properties (not to mention HGTV), have all propelled many first time real estate investors into buying up properties, often as cash deals. No bank is obviously involved in these cash deals and in all the excitement buyers can often ignore the need for the full protection provided by landlord insurance. If you are an income property owner, be smart and look into landlord insurance. Your investment and your hard-won assets need not be exposed and vulnerable so unnecessarily.

Landlord insurance is basically a policy that covers rental property from loss. In general this type of insurance will cover losses to your building resulting from fire and storm systems, explosions, and acts of vandalism. Often it can cover the landlords’ personal property that lies within the building. (To cover the personal property of tenants, it is up to the renter to individually purchase renters’ insurance.) This insurance would also provide coverage for a landlord’s liability if an injury were to befall a third party on the landlords premises.

Again, this kind of policy is very specifically meant for properties that are income-producing; it is quite separate from homeowners insurance. A major difference that calls for such specialized coverage is the simple fact that typical landlords don’t visit their rental properties nearly as much as they spend time living in their homes. As a logical consequence the loss risk is determined far greater because, for obvious reasons, most tenants are not nearly as concerned with the upkeep and care of a property as would be a landlord.

If the owner bought his or her property with the help of a lender, that bank or credit union will always mandate that there is proper insurance and will also periodically monitor the situation as the property is the lender’s investment too. For example, if a landlord misses an insurance premium payment and the coverage ceases, this would certainly put the investment at risk of loss, hence the bank or credit unions keen interest in the state of your insurance. No matter the situation, a wise investor protects his or her hard earned assets with sufficient insurance coverage.