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Home Insurance for Rental Properties

As the popular saying goes, “The best investment on land is land”. It is a long-standing dream for most of us to buy or build a home that we can call your own. When you accomplish that dream, the first thing you should do is make sure to safeguard your dream against any financial risks or other liabilities. Regardless of whether you choose to live in the house or rent it out, it is important to have Rental property or Landlord insurance. Very often, we secure the homes we live in and miss securing the houses we have painstakingly invested in as assets and rented out. Fix that now once you read this blog explaining benefits of Landlord’s Insurance.

What is a Landlord’s Insurance?

A Landlord’s insurance provides you and your home a protective shield against the risks like property damage, liability costs and monetary risks associated with tenants living on your property. The insurance policy also provides coverage from fire, theft, vandalization of property and other damages with malicious intent. The insurance policy will provide financial coverage if your home becomes uninhabitable due to poor maintenance by your tenant or any other unfortunate circumstances.

What are the factors that affect the Landlord Insurance premium costs?

Any insurance you wish to avail comes along with a premium cost, although the premium rates are not set in stone, there are certain factors that determine the premium costs. Listed below are the factors that affect your insurance premium costs.

  • The Size of the property
  • The Location
  • Number of rental spaces
  • Installation of Security systems
  • Type of policy availed

What is covered under Landlord’s Insurance?

Like every other insurance policy, the Landlord’s insurance provides a comprehensive cover with intent to offer your maximum assistance in case of a mishap. The following are the list of options that is covered under the landlord's insurance policy.

Property Damage

This is one of the most basic and essential covers in all the property related insurance policies. Property damage will provide you coverage against any damage to the structure of your home or personal belongings in the home in case of theft, vandalism, fire or damage caused by the tenant. The landlord’s insurance policy will provide maximum coverage for the replacement costs for all the belongings and the property, in case of a total damage.

Rental Income Loss

One of the major reasons why homeowners rent out their home is because they are not in a position to occupy their home and to drive some sort of monetary benefit from the property they invested in. But, there are chances where the tenants occupying your home do not take care of it and maintain it the way you would or want them to. In case the property becomes uninhabitable due to any of those reasons or major mishaps like storm or fire, a landlord’s insurance provides compensation for the loss of rental income.

Liability Insurance

Similar to property damage, this is one of essential covers in case of any property-related policy. A liability cover protects you from any risks like legal problems, monetary loss or third-party property damage. Third-party property damage includes any and every damage caused by you or your property to other’s property. For example, if a fire caused by faulty wire in your home damages your tenant’s personal belongings, the landlord insurance will provide you financial assistance to pay for the losses incurred by the tenant or legal expenses in case of a lawsuit.

Add-On Coverage

Apart from the above mentioned covers, the insurance provider also provides you with additional add-ons that you can avail to give your property maximum protection like natural disaster insurance, rent guarantee insurance, employer liability insurance and landlord contents insurance. This enables you to customize your policy as per your requirements.

A landlord’s insurance will offer you peace of mind and take the burden of stress and keep you happy by protecting you and your dream home against losses. Learn more about Property/ home insurance provided by Cholamandalam.

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