All Landlord Rental Property Insurance: 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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