Every day, more than 544 individuals become landlords in the United States. Do you own a property you want to rent out? You need to consider buying a landlord policy.
What is Landlord Insurance?
It is a type of insurance coverage that provides landlords with protection against various risks.
Who Needs it?
Do you own a single-family home or a second home that you plan to rent out full time? You need landlord coverage. Your homeowners policy may cover you if you rent out the house occasionally. Note that you cannot buy homeowners insurance if you do not live in the home.
How Does it Work?
If you want to convert your residence into a rental property, you need to covert your existing homeowners policy into a rental policy.
A landlord policy covers income loss and damage resulting from a covered hazard. Suppose flooding caused by a burst water pipe damages your asset and forces your tenants to vacate. Your policy will cover the damage and the lost rental income.
What are the Benefits?
It is cheaper than homeowners insurance and it ensures you get a steady flow of income after damage or loss. It also protects against landlord’s liability so you get to enjoy more peace of mind.
Successful real estate investing requires careful planning. Having adequate insurance protects your property and secures your income. You should consult your insurance agent for advice on the policies you need to buy.