Being a landlord or property manager is traumatic. There comes a lot of things that need to be taken care of, from finding the right tenants to maintain building integrity and safety, to make sure all paperwork is fulfilled. The list goes so long.
You need to have the Best Landlord Insurance to fully protect your home. There are many ways to lower your stress level.
The right insurance cover makes you sure that you will be completely covered in case of any property damage or accidents that can occur incidentally.
If there are more renters at your property, it means more profits but also increased the potential for severe hazards that you could be on the hook for. Having a comprehensive, good landlord insurance cover will protect your property from damages and safeguard you from possible liability expenses.
Here are the things you must know before purchasing your own landlord insurance or changing the terms of the insurance you currently have.
What Are the Types of Landlord Insurance?
Landlord insurance is basically divided into mainly three types i.e. dwelling property symbolled as DP -1, DP-2 and DP-3.
DP-1: it is the most basic and cheapest form of coverage that covers the most common perils such as lightning, fire, windstorm and hail, explosion, riots and civil unrest, and smoke damage.
An important thing to note is that this type of coverage only covers actual cash value. It means that it calculates the current market value of the damaged property, which depreciates in value every year.
DP-2: DP-2 covers everything mentioned in DP-1 but adds more comprehensive peril protection. This type of protection often includes burglary, falling objects, broken glass, frozen pipes, electrical damage, accidental overflow of water, cracking or breaking pipes, and the collapse of part of the building.
Having this type of coverage, you get the option to add replacement cost. This shows that your insurer will replace the damaged property to its full extent, no matter what. This comes with a higher monthly premium cost, but make sure that the damage is repaired to what it was before.
DP-3: it is the most expensive option but covers all possible perils. You get the option to cover the loss of rent if your renter cannot pay because of one of the perils described.
How to save money?
There are some ways by which you can save money on landlord insurance if you are worried about the expense.
You Can Bundle Your Policies: if you have other forms of insurance i.e. auto, home etc. bundling them together under one head will give you a discount. For instance, put your landlord, auto, life and homeowner policies under the same carrier.
Install Safety Features: installing safety features that will lower the risk of dangerous incidents. Having a safer property will appeal your insurance company as it takes on less risk with a lower chance to have to pay out claims. You can install updated smoke and surveillance cameras as well as burglar alarms, to name a few options.
Look for Discounts When You Shop: some groups are eligible for discounts including military veterans and first-time landlords. Make sure to ask your current insurer what they offer as well. It is good to compare quotes between insurers because they can vary widely. It is good to understand that being loyal to your insurance company can bring you discounts, but it often works the other way around. Shopping around will help to know the insurance company that you are a smart consumer.