By Read this before you do that.
All you want to know about the landlord insurance scheme
Property has become one of the most profitable assets in recent times. Many landowners are turning to rent their properties for additional income. However, some landlords are hesitant to give their property on lease or rent. This happens because they are concerned about the legal complications they may have to face in case there is a dispute with the tenant. The damage or destruction caused to a rented property is not covered by an ordinary insurance policy. This is also a factor that prevents them from earning additional income by renting their house or property. There are so many doubts and problems in their minds regarding how well the land is taken care of, insecurities regarding receiving the rent being some of them.
What is the solution to these issues? Now the landowners can avoid all these headaches through an insurance scheme. We have already seen that a regular home insurance scheme is not sufficient for a rental property. Here is a tailor-made scheme for such people.
Landlords insurance is the type of insurance that comes to the rescue of the landowners in this situation. It is very advantageous to take this policy before renting their lands.
The scheme offers the insured many advantages, some of which are as follows.
- The policy covers all damage to the land, in case of arson, burglary, terrorism, theft, natural calamities like floods, etc.
- It also covers damages from the tenant.
- It covers the compensation from a lawsuit in case the tenant or anybody present in the house faces injury or a loss due to negligence from the landlord.
- It is very helpful to the landlord because it compensates for the loss of rental income in case the property becomes uninhabitable due to any unforeseen circumstance.
An important factor one has to keep in mind is that one shouldn’t go behind the least quoted insurance as it may not cover all the factors.
The insurance amount one has to pay depends on a lot of factors. Some of them are listed below.
- the geographical location of the property
- known risks to the property,
- presence or absence of a security alarm system like a burglar alarm
- size of the property
Before taking an insurance policy one should have a very clear picture of what the insurance covers and what it does not. Mentioned below are some of the damages the policy doesn’t cover. Properties that are older than 30 years cannot be insured. It doesn’t cover any damage due to repeated use of the equipment and regular wear and tear. Also, damages due to nuclear activities are not covered. The policy doesn’t insure the belongings of the tenants.
Safeco Insurance is one of the leading insurance companies among the various companies providing insurance at different landlord insurance quotes. Safeco Insurance whose parent organization is Liberty Mutual Group is a US insurance group. It provides landlord insurance at a very reasonable quote. Liberty Mutual Group is a very and trusted insurance company in the country. The insurance is meant for non-commercial properties. The landlord can only own up to 16 rental units with a duplex counted as two.
Thus we can see that people who take the policy have an advantage over people who don’t.
