Things to Consider When Getting a Landlord Insurance

The most common concern among real estate property investors is how to turn their investments into assets. For real estate investors, the obvious solution is to make their properties earn income by renting them out.

Most landlord insurance property coverages will only include those properties needed to service the rented property. An emergency power generator or a lawnmower might be covered.

Know What Landlord Insurance Covers

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.

Know The Different Types Of Landlord Insurance

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:

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.

Dwelling Policy 3: Comprehensive Coverage

DP-3 is the most common type of landlord insurance policy. It provides comprehensive coverage as it has the broadest protection to landlords and investors. It’s also called an ‘all-risk’ or ‘open peril’ policy.

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