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5 Key Things You Need to Know About Landlord Insurance

Mar 17, 2022

Landlord Insurance

5 Key Things You Need to Know About Landlord Insurance

What is landlord insurance? It's coverage that a landlord buys to provide financial protection for their property. It includes coverage for structures and exteriors for apartment units, but it doesn't cover the contents inside the structures. Here's a closer look at what landlord insurance, CA is, and how it helps rental property investors.

  1. Insurance prices depend on a wide range of factors

    The costs a landlord pays for landlord insurance will depend on factors such as location, size, and what it would cost to replace damaged structures. They may pass some of these costs on to their tenants. If the property has unique features or presents unusual high risks, you may need extra insurance. Commercial real estate areas are subject to local laws and regulations, which differ from region to region. Chances are, a cheap rental space isn't going to have as much landlord coverage as a more premium location. Be aware of your own rental insurance options to ensure all your valuable possessions are financially protected. Don't just assume that your landlord will automatically cover replacing all your belongings in a disaster.

  2. It only covers property, not tenant’s belongings

    Landlord insurance covers the commercial property, not the possessions owned by tenants. That means if your complex burns down, landlord coverage will pay for rebuilding the complex, but it won't pay benefits to renters for their lost valuables. Tenants are expected to carry their own renters insurance to offset such losses.

  3. Know what’s covered

    Before you sign a rental agreement, you should know exactly what the property owner's landlord insurance covers. Does it cover theft and burglary? What about flooding and fire? Find out what type of liability protection the landlord has and if it covers court or attorney fees. This makes a difference if someone gets hurt in your apartment and tries to sue you or the property owner.

    By knowing what your landlord covers, you can go from there to make adjustments to your own renters insurance. You may own a valuable collectible item that your landlord's insurance won't cover but can be covered by your own renters plan. It's helpful to talk with an insurance expert about what types of items are covered under different renters insurance options.

  4. Know what’s not covered

    What the landlord doesn't cover is just as important as what their insurance does cover. As a renter, you should be wary of any rental investor that doesn't carry landlord insurance because it could mean you can experience a rough dislocation when a natural disaster strikes in your area.

    Landlord insurance doesn't cover every type of disaster, and it may not cover relocation fees for tenants. It may only cover certain types of flooding and fires, and it probably doesn't include intense disasters like earthquakes. It's good to know if it covers wear and tear issues that affect your rental unit's appliances.

  5. Multiple properties can be covered under one insurance plan

    Landlords have the option to bundle all their commercial property insurance together under one policy. This concept works out for brands that own multiple apartment complexes. It's much more convenient, but it may require more add-ons for special coverage.

Before deciding on a place to rent, make sure you understand how the owner's landlord insurance works. You should have a proper estimate of what it costs to replace a home in a disaster? Please click the contact us button if you have any further questions about landlord insurance. Get in touch with our insurance experts at Fuller Insurance Agency if you want to purchase affordable landlord insurance adapted to your needs.

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