Renting out your property is a smart way to generate additional income. However, just like any other investment, it’s crucial you protect it from the unexpected. That’s where landlord insurance comes in. The following guide outlines what you need to know about this kind of policy to help you get started.
4 Common Questions About Landlord Insurance
What does it cover?
A landlord policy protects nonresident owners of rental properties from financial loss brought on by natural disasters, such as fires, storms, or flooding. It also protects against the damage or theft of any personal property kept onsite.
How does it differ from renters insurance?
Landlord insurance is meant to protect the owner of the property from financial loss, while renters insurance provides tenants with compensation if their belongings are damaged or stolen.
When you bring on a new tenant, you should let them know your policy will not cover them. Encouraging them to get coverage will provide the most comprehensive protection.
Do I need this?
If you only plan to rent out your home for a short period, you probably won't need to invest in this coverage. However, if you intend to use the property as a means of generating income, a landlord insurance policy will protect you and your investment.
Which factors influence the cost of premiums?
Your rates will generally depend on the level of coverage you want, the size of the home, and the number of units in the building.
If you want to lower your rates, install features to protect the home from theft and damage. These include security cameras and burglar alarms.
If you need help creating a comprehensive landlord insurance policy, turn to Bryan Nelson Ives-Johnson Agency INS in Jamestown, NY. Serving Western New York, they will help you develop a personalized policy to protect all your interests. They offer a range of policies, so bundling your landlord insurance with other products could score you even lower rates. Visit their website to learn more about their options, and call (716) 488-1191 to schedule a consultation today.