Landlord Insurance FAQs and Answers
Posted by David Ross on Sat, Jul 22, 2023
A rental property is a significant investment that you have no choice but to entrust to total strangers. Landlord Insurance can protect you, your property, and your tenants. However, as an investor, you are probably looking to make a profit on your rental property, so you want to ensure you have the right coverage at the lowest cost possible. Understanding Landlord Insurance and working with the right insurance agent can help ensure that happens. Landlord Insurance is a unique type of homeowners' insurance that protects your property – house, condo, guest house, apartment building, commercial building, etc. – if you rent it out to someone else. Rental properties present unique risks, and homeowners' insurance won't cover damage to a rental property or protect you against any lawsuits related to the property. Landlord Insurance does this and more. Typically, Landlord Insurance is not required by law, but most lenders will require it, and it makes good business sense. Landlord Insurance is customized to your needs so that coverage can vary. However, most landlord insurance will cover the following against fire, lightning, smoke, explosion, hail, aircraft, vehicle, windstorm, and vandalism: Typically, landlord insurance does not cover the following: Optional Riders landlords may want to consider: Renters' insurance typically includes personal property coverage, renters' liability insurance, guest medical expenses, and additional living expenses against disasters, such as fire, theft, and vandalism. It does NOT cover the building. Renters' insurance is also not required by law, and only 55% of U.S. renters purchase it to protect their property. However, landlords can make renters' insurance a requirement of a tenant's lease, and "75 percent of insured renters are required by their landlords to obtain renter's coverage." While renters insurance will NOT cover your property, there are many benefits of requiring renters insurance: Yes. Because owning and renting property is a business, your Landlord Insurance is considered an expense, and the premiums you pay are tax deductible. Here are eight tips to help you save on Landlord Insurance costs: Now that you understand Landlord Insurance better, be sure to contact one of the independent agents at American Insuring Group so you can start saving! We help you get the best price on the coverage you need. Call (800) 947-1270or(610) 775-3848,orconnect with us online.5 Landlord Insurance FAQs
1. What is Landlord Insurance?
2. What Does Landlord Insurance Typically Cover?
3. Do I Need Landlord Insurance if My Tenants Have Renters Insurance?
4. Are Landlord Insurance Premiums Tax Deductible?
5. How Can I Lower Landlord Insurance Costs?
Don't Overpay for Landlord Insurance!
Tags: Landlord Insurance