24 Sep Everything You Need To Know About Landlord Insurance
Renting out a residential property can be a great investment and source of income. However, landlording is a task that should not be taken lightly, or else your dreams of being a successful Florida real estate investor can turn into a financial nightmare.
When renting out your property, you need to make sure you are providing the safest and most secure environment for your tenants. Also, your commitment to repair and maintenance procedures should be clearly set out in the lease or rental agreement. This is why it is important for landlords to have the right insurance coverage, to protect themselves from lawsuits in case of any accident on the property.
Strassman Insurance Group can work with you to write a landlord insurance policy that provides the right amount of coverage. Now, let’s explore the responsibilities and coverage options that every landlord should be aware of.
What is Landlord Liability Insurance?
It is a way to protect the landlord financially, in case a tenant decides to sue for damages. It should be noted that damages can mean anything from physical injury, medical bills and even emotional distress. You can be held legally responsible for injuries resulting from unmaintained conditions that you failed to inform your tenants about. You can also be sued for damages that occurred after you failed to repair a dangerous condition reported by a tenant.
What does Landlord Insurance cover?
- Liability coverage: Covers the cost associated with your legal claim where you are held liable after an accident, damage or loss related to your property.
- Premises medical protection: Covers all medical expenses if someone is injured in an accident on your rental property.
- Burglary coverage: Covers all repairs due to loss from a break-in.
- Rental property under construction: Covers your property before it’s ready for occupancy.
- Fair rental income coverage: Replaces lost rent payments in case your property is currently uninhabitable after a covered claim. For example, your tenants are unable to live in your property if it’s damaged by fire or smoke. This type of coverage will protect your income by replacing your rent checks, and is usually available for up to 12 months.
Additional coverage may be advisable, depending upon your location and other factors. Your Strassman Insurance Group agent can assess your situation and advise you accordingly.
In what situations can a tenant sue a landlord?
You can be held liable for the following situations:
- Not fixing a dangerous condition or bringing it to the attention of the tenants.
- Mold on your property that causes tenants to get sick.
- A burglar breaks in because the locks were not installed safely and properly.
- Physical injury resulting from bad maintenance or negligence.
How to Prevent Personal Injuries to Tenants
Reduce the risk of injury to your tenants by:
- Repairing conditions reported by your tenants in a timely manner to prevent injuries and accidents.
- Inspecting your rental property on a regular basis to make sure it is in good repair and provides a safe environment. This will also make you aware should the tenants damage property or create hazardous living conditions.
Adding umbrella insurance
Adding umbrella coverage is beneficial because it helps cover costs when the standard landlord liability insurance exceeds its coverage limits. Umbrella insurance also covers claims that are excluded from a landlord’s insurance policy, such as slander, false arrest, libel and malicious prosecution.
Another advantage to having an umbrella insurance is to cover personal circumstances on top of your rental property. A good example would be if your dog bites someone outside of your property. An umbrella policy can cover all related medical expenses.
Speak with one of our agents at Strassman Insurance Group and learn more about the benefits of adding umbrella insurance.
Whether you’re just starting with your first property, or are an experienced landlord, you can always benefit from taking a closer look at your insurance coverage. Schedule your consultation today, and feel more secure.