There are numerous risks associated with being a landlord. Your property could be damaged by tenants or destroyed by a fire or flood. Items that you place on the property, such as appliances, may be damaged or destroyed. As a landlord, you probably have a significant amount of financial equity in your rental properties. Landlord insurance helps you minimize the risks of financial loss.
Depending on your policy, landlord insurance may cover the property and the contents inside of your building. You can also get loss of rent benefits should a loss cause a tenant move out. Typically, the building coverage is for the amount of the replacement (rebuilding) value of the property.
If you furnish apartments, coverage typically is available to cover these items, as well.
You will also get liability coverage, which is very important for a landlord. There is a chance you may be held financially responsible or sued for events that occur on your property, such as injuries to people on the premises or damage to their property. The more tenants you have, the more likely this is to occur.
Being a landlord can be financially profitable, but there are significant risks. Landlord insurance is a smart way to protect your property from peril while maintaining your cash flow.
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