Landlord building insurance is a form of cover for property owners who rent or lease property or parts thereof to other people or companies.
Just like the basic homeowner’s policy, this policy normally covers any damage to the building and the belongings of the owner. It also has liability and medical coverage in case of injuries that occur on the property. The contents found inside the building are not covered; property of the owner that is used and stored on the premises is.
Landlord Building Insurance Options
Particular coverage will vary depending on the policy, with each additional option added increasing the cost. One way to greatly decrease this price is to the lower the deductible set for each claim filed. A deductible is the amount needed to pay if there is ever property loss. This amount usually ranges from $100 to 5% of amount of building coverage.
Comprehensive covers the loss from every cause unless something is specifically excluded in the policy. A policy with a lower cost may limit the coverage to certain situations. An ‘actual cash value’ policy will pay back the owner for the property value less it depreciation. A policy that has a higher cost ‘replacement value’ will pay the owner the replacement cost, but only if an item is actually bought for replacement.
The actual cash value coverage considers depreciation when it comes to paying claims but does have a lower premium. Replacement cost coverage does pay the cost of replacing damage to a building, but the landlord has to rebuild the property to be reimbursed the full cost.
There are some landlord building insurance policies that cover income from a rental during a time of repair; otherwise known as loss of rent coverage. A policy may also cover any court costs due to evicting a tenant for not paying rent. The owner of the property can be provided with insurance for landlord contents like appliances and furniture
Additional options may be added to Landlords Insurance:
- Emergency assistance to help pay the cost of calling a contractor
- Legal Expenses to cover costs when problems arise with tenants
- Rent Guarantees that cover when a particular property is not occupied
