If you are planning to be a landlord, you would be breaking the law if you won’t take the right insurance policy for your property. For instance, if you want to rent out a property to any kind of tenant and want to be protected, in a case when something goes wrong, standard insurance policy for your building or content won’t cover you in a claim of an accident. For this, you need a landlord policy instead.
It may seem daunting and difficult to be a landlord. It takes a lot of struggle that needs to be taken care of from finding the right renters, maintain the security and safety of the building to make sure that all the paperwork is filled. The list goes so long! Getting the
Best Landlord Insurance policy keeps your stress away and give you peace of mind.
Make sure to get the right insurance policy that can fully cover you in case of any property damage or accidents that may and often do occur.
Types Of Landlord Insurance:
Landlord insurance is mainly classified into three types such as; Dwelling property (DP) 1, 2, and 3.
DP-1: it is the most basic and cheapest form of coverage that covers the most common perils such as; fire and lighting, windstorm and hail, explosion, smoke damage, as well as riots and civil unrest.
An important point to note that this type of coverage only covers actual cash value. This shows that it takes the current market value of the damaged property, and this value belittles every year.
DP-2: this type of policy includes everything covered in DP-1 while adding more comprehensive peril protection. It often includes falling objects, electrical damage, burglary, ice and snow, frozen pipes, broken glass, accidental overflow of water, and collapse of part of the building.
This type of coverage gives you the option to add replacement cost. No matter whatever happens your insurer would be responsible to replace the damaged property to its full extent. This covers with a higher monthly premium cost, but you will be at peace that the damage would be covered to what it was before.
DP-3: this cover is the most expensive one so covers all possible perils. Here, you have the option to cover the loss of rent of your renter is unable to pay because of one of the perils described.
Common exclusions include; power failure, acts of war or terrorism, neglect, nuclear hazards, intentional loss and flood damage or water damage covered via the National Flood Insurance Program.