| NYC Business Group
A Quick Guide to Landlord Insurance Policy
A landlord insurance policy refers to an insurance cover that protects/covers homeowners from financial losses from their rental properties. With a landlord insurance cover, the property owner is covered against standard fire, theft, malicious damage, and allied perils. Ergo, with a landlord insurance policy, you will enjoy liability and property protection. It is essential to understand that the landlord insurance policy does not offer coverage to tenants.
Why Should You Purchase Landlord Insurance Coverage?
Typically, a homeowners policy covers owner-occupied homes. Therefore, if you start renting out to other people, the coverage does not apply. Since renters are not liable when someone suffers an injury on the property, forest fire damages, or theft, the property owner can incur heavy financial losses whether these misfortunes are caused by mother nature or humans. Give our office a call, and get a quote today!
The landlord insurance policy does not cover the tenant’s small business. For example, if the fire burns the building down, the landlord insurance policy pays for the building repair. Small business owners are responsible for repairing or replacing their lost property. Sometimes, the landlord insurance cover does not cover the mistakes made by the landlord! For instance, if faulty wiring caused fire damage, the landlord insurance cover cannot cover the damages to the building because the landlord was responsible.
Business owners should invest in commercial property insurance to be safe.
The commercial insurance policy covers the repair and replacement costs thus protecting you from:
- Theft
- Malicious damages for example vandalism
- Fire damage
- Lightning, wind & minor windstorms
Most landlords require their tenants to have commercial property insurance prior to signing a lease. With commercial property insurance, a tenant is safe from financial loss. For example, if a mind windstorm causes a leak that ruins your furniture and damages the computers, the insurance policy will cover all the damages.
What is the Cost of a Landlord Insurance Cover?
Landlord insurance cover cost is determined by the following:
- Property size
- Geographical location – areas prone to known risks have higher premium rates
- The security systems you have installed – you can get a discount for installing security systems like fire and burglar alarms
- Type & coverage amount offered by the landlord insurance policy/coverage
- The number of rental units
A landlord insurance policy has numerous benefits including offering peace of mind to financial security if the rental units become uninhabitable. However, as a property owner, doing it right is vital. Landlords are advised to research and get professional help when buying a landlord insurance policy to avoid making mistakes. If you are not familiar with this insurance coverage, seeking help from a broker is recommended. We can help you navigate the complicated fields of commercial insurance, call us today!
Tenants who have commercial space, are advised to buy commercial property insurance since they are affordable and beneficial. There are some of the ways one can save a considerable amount of money when purchasing commercial property insurance. For example, purchasing a business owner's insurance policy is a good move because it includes general liability coverage and property insurance as a single package. Buying the two policies together as a single package can help small business owners get a discount.
If you are contemplating renting out your property, start by checking your homeowner's insurance policy. As a property owner, you should not assume that the homeowner's insurance will cover liabilities and damages while you rent the property out. Therefore, if you want to rent out your property, landlord insurance coverage is a must. Finally, it is prudent to encourage your tenants to take out a renter’s insurance policy just as a precautionary measure in case of an accident or unforeseen events.