If you have an interest in becoming a landlord, you should know that even if you require your tenants to have renters insurance, you are still at risk to suffer a financial loss if someone is injured on your property or your rental house is damaged or destroyed. Owning rental property can be a great way to make money, but if you are not properly insured, it can also be disastrous.
Landlord insurance typically covers damage or destruction to the structures on your rental property that is caused by a covered event, including fire, storms, theft, and maliciousness. A landlord policy may also include liability coverage that will protect you and your finances up to the limit identified in your policy if someone is injured on your rental property. In exchange for an increased premium, your insurance company may increase the amount of liability coverage that is included in your landlord policy.
If your landlord policy has limits for the amount of medical, damage, and/or negligence protection it provides and you are concerned that these thresholds are not high enough, consider getting additional protection by purchasing an umbrella policy. An umbrella policy will pay liability claims against you up to the amount of its face value after the limits in your landlord policy are reached.
If you are thinking about becoming a landlord and are concerned about the type of insurance you need to carry, contact Black Box Equities at 623-866-5548 or send an email to email@example.com.