Finding the Best Landlord Property Insurance

Under the general heading of homeowner’s insurance, there are several specialized types of insurance that address specific needs of specific circumstances.  Property that is being rented out to other occupants or landlord insurance is one of these specialized types.  Several important factors come into play with this kind of insurance.

Landlord insurance is intended primarily to protect the landlord in case the property is damaged or otherwise becomes unable to be used so as to produce its intended income.  This could be a legal issue with a tenant.  Legal fees may be refunded to the landlord if such is covered in the policy.  Repairs to damaged property may also be covered as well as the lost income from the unusable property.

Landlord policies may be exclusive to either interior or exterior damage to the property.  The specific language of the policy should be considered carefully to determine exactly what is and is not covered. 

Two types of policies exist for landlords.  Comprehensive policies cover all types of damages and loss except for any that are specifically excluded.  By contrast, peril policies cover fewer kinds of losses and only those that are specifically included by the policy.  These policies, as one might imagine, are cheaper.

Landlord policies are intended to protect that landlord’s property, income, and liability.  It does not protect the tenant’s property.  They are themselves responsible for their own property.  Renter’s insurance is available and a wise move.

Landlords are given an option as to the type of coverage they select.  One covers actual cash value.  This is the cheaper option but the money that this policy pays is for the current cash value.  That means depreciation is factored in to determine the present value.  It will most certainly cost more (and in some instances, much more) to replace this item than the amount of the cash value provided by insurance.

The other alternative is for replacement value.  As the name implies the insurance covers  the cost for replacing this item or damaged property.  This coverage is more expensive on a monthly basis, but does mean less out-of-pocket expense when a claim is filed.  Also, in order for the company to provide funds, the replacement often has to have already been made.  In other words you won’t be able to file the claim, receive your compensation, and pocket the cash. 

A couple of potential savings on landlord insurance are, first of all, shopping around for the best rate.  This is always a good idea when trying to get insurance.  Don’t just go with the first company you talk to.  Comparison shopping can save you money more often than not. 

The second means of saving money on landlord insurance is to raise the deductible.  This will lower the monthly premium rates.  Also know, though, that this means when a claim is made, that you will have greater out-of-pocket expense before the insurance company will begin to pay.