Renting Your Home? 4 Reasons You Need Landlord Insurance

Are you thinking of renting out your home? If so, you may be assuming that your current homeowner insurance policy covers you—but it does not in many cases. What you need is a landlord policy.
While there are similarities, landlord insurance confers several important benefits. The coverage available varies greatly, so carefully evaluate your options before signing on the dotted line. Here are some of the kinds of things for which you may wish to buy protection from your Peekskill NY insurance provider:

1. Repairs to damage to property due to fire, flood, malicious damage, lightning, etc.

2. Lost income when the property cannot be rented due to disputes or damages

3. Payments for liability legal defense and judgments, i.e., for injuries that occurs on the part of the property for which the landlord is responsible or for negligence, e.g., in repairs to tenant property.

4. Payments for defense and judgments involving libel, slander, discrimination, unlawful eviction, or invasion of privacy.

Your Kingston NY insurance agent can also offer you a comprehensive coverage for all types of situations except those that are specifically excluded.

How To Get The Best Value:

As with homeowner insurance policies, you can select from compensation for actual cash value or for replacement value. Since the cost of replacement is higher than the actual cash value, you will pay higher premiums for that. The advantage, or course, is that your property will be replaced without discounting any depreciation. If you want to keep the premium lower, opt for the actual cash value policy. As with home and auto insurance, choosing a policy with a higher deductible will also reduce your premiums. In the event of damage, you will have to pay that amount before you can collect on a claim.

Your Renters Need Insurance Too.

You should also encourage your tenants to take out a renters’ insurance policy since your policy will not cover damage to their belongings. You can save yourself a potentially disagreeable encounter with tenants by making sure they are aware of this when they sign the lease as many renters erroneously assume that your policy covers their belongings. Their policy should include liability insurance should anyone be injured in their residence.

Finally, remember that you can deduct the cost of landlord insurance from your taxes. When you consider that even a small lawsuit could cost you a few thousand dollars, and a one involving serious injury or death could be astronomical, landlord insurance is something you cannot afford to be without. Your Middletown NY insurance professionals can arrange for you to get the protection you need at a price you can afford.