Real estate is one of the most lucrative investments one can undertake. Since the investment involves huge amounts of money, one can easily suffer huge losses in the event of damage. The landlord insurance gives you the peace of mind. Imagine buying a property worth millions of dollars and losing it in disasters such as fires, floods and many more. This can be a very unbearable situation that may even result to loss of jobs to many individuals. But with this type of insurance, you sit back and relax as you are sure that your building is fully covered from all forms of disasters.
What It Covers?
The policy is designed and made in such a way that your building is protected from dangers that can be caused by natural disasters. With this form of insurance cover, you can be rest assured that your entire building can be rebuilt by the insurance company. The cover can also cover the tenants who may be living there or any other individual using the premise. In the event that they fall or have certain accidents that are directly linked to the building, then you can be rest assured that the policy will stand in between and meet the cost.
Landlord Insurance Versus Home Insurance
A lot of people tend to see the two as similar. However, this is not the case. The landlord policy covers properties that are bought for leasing something that home insurance does not provide. In addition to this, the cost of getting the landlord one can be much higher as compared to the home insurance. This implies that if you cove your building under home insurance and you lease it, then you will not claim anything in the event that you suffer a loss. Home insurance is categorically meant to cover residential home.
Why The Disparities In Payments?
Landlord insurance premiums differ from one place to another. This is attributed to the fact that the rate of crimes and risks also differ with the location. There are those regions that are prone to disasters more than others. The amount of premiums that landlords pay in such a place will be much higher than those from safe regions. The insurance companies usually use the postal codes that you provide to get the levels of crimes and disasters from the relevant authorities. Therefore if you discover that you are paying more in one place than anther then you should know why.
Is It A Legal Requirement To Have It?
You are not legally mandated to have this insurance for your building. However, basing on the reasons above, you should have every reason to have it lest you suffer huge losses should an incident occur.
Buying The Policy
The process of buying a landlord insurance cover is very simple. After you have conducted a thorough study and research on the various insurance companies that provide the cover, then you can provide all the relevant information by simply filling in some forms. This has been made very effective and convenient by doing it online.