If you are a property owner and have rented or leased your property to tenants, then you know how important it is to have landlord insurance. However, newbies to the real estate market may have no idea why landlord insurance is important. With that being said, below are a just a few reasons why landlord insurance is so important — whether you just started renting out a property, have been renting it out for years, or are thinking about renting a piece of property to someone.
- Safeguarding Against Disaster: You can never predict when something is going to happen to your home, whether it be your own or your rental property. You can obtain landlord insurance that will cover the home in the event of a flood, fire, or other devastating events.
- Personal Belongings: While the home likely won’t have many of your own personal belongings since you aren’t the one living there, you may have furnished the home or provided appliances to the tenant upon move-in. Landlord insurance will cover anything you furnished in the rental property for tenants.
- Covering Your Own Butt: Believe it or not, there are little things in the property that could result in your tenant being injured. For example, a light fixture may not have been completely tightened and could spark a disaster for you, resulting in your tenant being hurt. Landlord insurance can cover your tenant’s injury.
- Landlord Insurance vs. Other Insurances: Not all insurances are created equal. Homeowner’s insurance would likely result in you paying too much for your premiums. In addition, having the wrong policy on a property rental could result in your policy being canceled. It is important to have a landlord policy for insuring your rental property.