As a landlord, you have a lot of responsibility on your plate. In addition to making sure that your tenants are safe and happy, you have to worry about getting paid on time and keeping your properties in good shape. Making sure that you're covered by an insurance agency is an excellent way to protect your rental business long-term. Here are a few features to look for when choosing a new landlord insurance policy:
An important feature that your landlord insurance policy should offer is liability coverage that will protect you in the event of renters filing lawsuits against you if they're injured on your property you as time goes on. With liability coverage in place, you'll be protected against liability lawsuits as much of the costs will be covered by your insurance. Things like legal fees, medical payments, judgments, and even funeral arrangements are typically paid for through liability protection. Ask for a copy of the liability coverage that comes with each policy you consider buying so you can carefully compare their specifications before making any financial commitments.
If a tenant doesn't pay their rent for months and the legal process of evicting them is taking longer than you'd like, income compensation can come in handy. By making sure that your landlord insurance policy includes income compensation, you won't have to worry about covering costs while working to get new tenants into the place. Income compensation will also cover you if one of your properties are damaged due to a loss that's covered, such as a fire, and can't be inhabited until the damage is fixed. The point is to continue getting compensated for the rental income you're losing due to non-paying tenants or issues that are covered under other parts of your insurance.
As a landlord, chances are that your circumstances will change throughout the years due to the different living situations of your tenants and the evolving nature of your properties. So, being able to make changes to your landlord insurance policy as time goes on makes sense. It's a good idea to make sure that the policy you choose offers add-on options you can take advantage of as your rental business grows and evolves. Look for a policy that offers options such as renter's guarantee coverage, employer liability protection, natural disaster insurance, and personal property coverage that can be added onto your policy later for a minimal rate.
These important features shouldn't be overlooked, as they're sure to make a positive impact on your overall experience as a landlord.