Update July 29 -2009 All About "Landlords Rental Property Insurance" Information By Insurance Experts

Landlords rental property insurance is defined as a policy to cover a property owner from financial losses connected with their property which they let out. Mainly a landlord insurance policy will cover the building itself with the option of including the contents left within. It covers standard perils such as fire, lightning, explosion, earthquake, storm, flood, escape of water/oil, subsidence, theft and malicious damage. Each insurance policy is different and may or may not include all these items. Most companies will provide the option to have extra cover on top of what is considered the standard cover. These may include things such as accidental damage, legal protection, alternative accommodation costs or rent guarantee insurance.

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What is Landlord Insurance and What Does it Cover?
By Patrick Mahen

For anyone who owns a rental property they know that finding a good tenant is key to a successful income unit. Well that can also be said for having the right insurance in place in case something bad happens which it inevitably will. In this article I will explain what landlord insurance is and what it will cover in the event of a loss.

Landlord insurance is very similar to homeowners insurance but it is a different policy with greater coverage for those who use the property for rental income. There are many different types of landlord policies but the main point is that you must have a policy designed for rental properties or you may not be covered completely. Here is a list of commonly found coverage on a homeowners policy:

• Dwelling Property - Also known as building coverage, it covers many types of damage done to your home including hail, wind, and vandalism.
• Personal Property - Usually based on a percentage of the building property, it covers loss or damage to items like clothes, electronics, and furniture.
• Liability - Pays when you are legally liable for someone else's bodily injury or property damage resulting from accidents. This includes costs to resolve claims or defend lawsuits brought against you.
• Medical Payments - Rarely used but on most home policies this will pay for medical expenses for people injured at your residence regardless of liability.
• Additional Living Expenses - When you are forced to live elsewhere while damage is repaired to your home this will pay for additional expenses commonly up to 24 months or a specific coverage limit.

The items listed above are usually covered under most comprehensive homeowners policies but there are items that need special coverage or have different use on a landlord insurance policy. As you can imagine there are different things that can happen when you rent your property versus living in it. This can expose you to more liability and perhaps more severe damage due to not being there to mitigate immediately. In addition to the coverage listed above here are few important differences or additional coverage items on a landlord policy:

• Loss of Rental Income - This replaces "Additional Living Expenses" and is used when a loss forces your tenants to move out while damage is being repaired. The loss of rental income during this period is covered.
• Landlord Liability - This is similar to liability protection on a homeowner policy but if you don't have landlord policy your insurance carrier could deny your claim as you did not inform them the house was rented to others.
• Water Backup - Water is a homeowners worst nightmare especially if you don't have water backup coverage. Most standard policies will not cover a backup from sewer systems so this coverage is vital.
• Identity Theft Protection - Some insurance companies offer this as an additional coverage. This is the fastest growing crime worldwide and you as a landlord need protection. Id theft protection can cost as little as $8/mo.

Being a landlord can be very rewarding but also carry many new challenges for homeowners. Be sure to talk with your insurance agent about the right type of policy for you. Remember that you must notify your insurance company that you rent your home so they don't have the ability to deny a claim you file on a rental property.

Get more information on landlord insurance and a fast way to get multiple quotes from leading insurance companies at my site. If you want to review identity theft protection companies check out this review site for in depth comparisons.

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Update July 11 -2009 All About "Landlords Rental Property Insurance" Information By Insurance Experts

Landlords rental property insurance is defined as a policy to cover a property owner from financial losses connected with their property which they let out. Mainly a landlord insurance policy will cover the building itself with the option of including the contents left within. It covers standard perils such as fire, lightning, explosion, earthquake, storm, flood, escape of water/oil, subsidence, theft and malicious damage. Each insurance policy is different and may or may not include all these items. Most companies will provide the option to have extra cover on top of what is considered the standard cover. These may include things such as accidental damage, legal protection, alternative accommodation costs or rent guarantee insurance.

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Rental Property Insurance and Why Loss of Rent is So Important

By Edward Groninger

One the easiest and fastest ways of making one rental property insurance policy CHEAPER, is simply to remove, or not to offer, the loss of rent to the landlord. This one coverage alone could be the difference between bankruptcy or profit on your rental property. Worst of all, it cost only pennies of day on your insurance premiums.

Here is a great example:

Imagine your four unit apartment building, the lowest tenant, teenager is making French fries with some friends and forgets about the fries for just a minute or two. The next thing you know you have a moderate to average kitchen fire. Everyone gets out, nobody is hurt but you do have some and a ton of water damage thru all four units of the building. The fire fighters, are more concerned about getting the fire out than the damage they cause and you have carpet, water, smoke, fire damage just everywhere. From roof to basement it is just one big mess.

Not to worry, you have insurance that pays for the fire and the clean up but you did not buy the loss of rent coverage, or you have some but not enough, (most policies that offer loss of income never have enough of it for a rental property). Now not every contractor is going to drop everything they are doing to jump on your job, you need wait. You wait for the adjuster, the fire marshal, the contractors, the bids, the building permits, the workers, the weather. A two to three month job takes five to six months.

So six months later the repairs are done, the apartment unit looks great and your previous tenants are gone. They needed someplace to live and could not wait around for you, even if they did, what about all that loss of rent for the last six months. What rental property owners forget is that the bank does not wait for their mortgage payment, they still want paid while the building is being repaired. Also you rely on that income for your own needs. You don't want to volunteer your profit for six months and why should you.

This is where los of rent comes in at. It pays you what you would have been receiving if the apartment never had the loss. You still get paid while all the repairs are being made, you still have money coming in to pay the mortgage bill, the property tax etc. Of course, you still get paid the profit you would have made so you can pay your own bills.

Loss of rent is vital to your rental property insurance package. One make sure you have it, then make sure you have enough of it. What is your monthly total rent for the apartment building, times that buy a minimum of nine months. That is the least amount that you need. Best of all, it is probably the cheapest coverage on your Rental Property Insurance policy to increase or to add. It literally cost pennies a day and is the difference between bankruptcy and profits to you.

If you are looking for Rental Property Insurance and its contents, look no further than a quality quote from Groningerinsurance.com. Your Pa Rental Property Insurance We specialize in insurance for your rental property.

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