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What is Landlord Insurance & Do You Need It?

As a landlord, you are ultimately responsible for the property you rent out, meaning if something happens to your rental property, you could be held liable. Landlord insurance is a type of insurance that can help protect you from financial losses if an event occurs.

But is it essential? Our experts at Instyle Property Management explore this in more detail.

What Does Landlord Insurance Cover?

There are a few different types of coverage that are typically included in landlord insurance policies. Some of the most common types of coverage include:

  • Property damage: This can help cover the costs of repairing or replacing damaged property.
  • Liability: This relates to costs of any legal fees or damages that you may be held responsible for if someone is injured on your property.
  • Loss of income: Recoupment of lost rent if your property is damaged and uninhabitable.

Do You Need Landlord Insurance?

The answer to this question depends on a few different factors, one of the biggest being whether your mortgage lender requires it. If so, then you will need to get a policy to keep your loan in good standing.

If you feel comfortable self-insuring against risks, then you may not feel the need to purchase a policy. Should you want the peace of mind that comes with having insurance, then it may be worth the investment.

How to Select the Best Landlord Insurance Policy for Your Property

With so many different policies on the market, it can be difficult to know which one is right for you. Here are some tips to help you select the best landlord insurance policy:

  1. Know what cover you need: Before you shop around for landlord insurance, it is important to know exactly what cover you need. Make a list of all the potential risks that could affect your property and your rental income, such as fire, theft, damage from tenants, or loss of rent if your property is unoccupied for a period.
  2. Compare policies: After you know what cover you need, you can start comparing policies. Look at the level of cover provided and the excess that you would have to pay in the event of a claim. It is also important to check the small print to make sure that there are no exclusions that could leave you out of pocket.
  3. Get quotes from different insurers: Now, it is time to get some quotes from different insurers. Make sure you provide them with all the relevant information about your property and your needs so that they can give you an accurate quote.
  4. Read the policy documents carefully: After choosing a policy, it is important to read the policy documents carefully before you sign up. This will ensure that you understand exactly what is and isn’t covered by your insurance.

Learn More By Working with InStyle Property Management Today

For more information on landlord insurance, rental appraisals and more, please feel encouraged to contact us at Instyle Property Management today.

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