4 Things To Consider Before Getting Landlord Insurance
In a rental property, your investments are always at risk of being damaged. To address this, investors buy landlord insurance to cover risks and potential damage.
Distinction Between Homeowner’s And Landlord Insurance
The main difference between the two is that you can get homeowner’s insurance only if you’re going to live in the property as your primary residence.
Know What Landlord Insurance Cover
Landlord insurance policies were specifically made to insure properties that aren’t going to be occupied by the owner as a primary residence.
Know What It Doesn’t Cover
Landlord insurance won’t cover some of the personal belongings you left inside your rental property. It won’t cover the personal belongings of your tenants, too.
Your coverages will depend on the type of landlord insurance that you choose for your rental property. There are three types (also called ‘dwelling policy’) of landlord insurance.
Know The Different Types Of Landlord Insurance
Dwelling Policy 1: Very Limited Coverage
A typical DP-1 policy lists only 10 specific causes of perils and damages. These are fire and lightning, windstorm and hail, volcanic explosion, internal and external explosion, smoke, aircraft, vehicles, riot and civil commotion, vandalism, and malicious mischief.
Dwelling Policy 2: Moderate Coverage
This will cover all the perils covered by DP-1, plus burglary damage, glass breakage, electrical damage, falling objects, collapse, tearing apart, cracking, burning, bulging, freezing of pipes, the weight of ice and snow, and accidental discharge or overflow of water or stream.
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