Understanding Landlord Building Insurance Coverage

Landlord Building Insurance Coverage

Landlord building insurance is a must-have to rental property investors. Regardless of your investment portfolio, it is essential to find a foolproof insurance policy that protects you and safeguard property enough to cover your losses in the time of any disaster or calamity. While home insurance does cover most general requirements for a property, specialty policies on landlord building insurance can be crafted to address your extra needs like rental default, damage to contents, and other inclusions which an insurer deems fit.

 Many insurers however, offer the following coverage for their landlord building insurance plans:

 

  • replacement to damage on the building itself and personal properties therein due to natural disasters, fire, theft or burglary, vandalism, and malicious damage by tenant

 

  • liability insurance to protect a landlord from any lawsuits and liability claims emanating from injuries or bodily harm that took place in a property; this involves cost incurred for medical payments, legal fees, settlements or funeral costs

 

  • loss of income or rental reimbursement in the event of calamities, natural or otherwise, resulting in a rental property becoming uninhabitable

 

  • rental guarantee due to tenants failure to pay rent due to verified or malicious intent

 

In some cases, a comprehensive landlord building insurance coverage also offers insurance for contents like fixed furnishings, furniture and electric appliances, carpet and loose floor cover, windows and fixed awnings, and many more. Some insurers or brokers can customize an insurance policy to suit your requirements.

 

Legal Requirement

 

Does one really need to have a landlord building insurance policy? For some investment property owners, a home insurance policy may look a sturdy tree to lean on in times of disaster. Landlord building insurance is not entirely required by law if you have a home insurance policy in place as they tend to cover some of your basic needs. However, Landlord Insurance HQ recommends that adequate care be given to areas where risks and hazards are quite high.

 

Unlike the limited coverage of home insurance, a landlord insurance encompasses not just protection of the building itself but its contents and subsequent inclusions as well. At some point, a dispute or issues with a tenant may happen leading to legal disputes or malicious damage, which are not covered in most home insurance policy. With a foolproof landlord insurance policy in place, you can have a safety net to fall back on and bring you back steadily on your feet as soon as possible. The key is to find a reliable insurer or broker who can give you the right coverage at a reasonable premium.

 

Need help crafting an airtight landlord building insurance policy? Schedule a consultation with us. Landlord Insurance HQ can customize a landlord insurance portfolio to address your unique requirements. Call now on 1300 815 344 or request a quote online.