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While landlord insurance costs are often around 25% higher than standard homeowners insurance, it is just as important to have. These policies protect your home and you from problems that may crop up during the process of renting out your property.
With that in mind, what are the different types of insurance coverage you should seek out to ensure you have adequate protection?
Below we list four of the main areas you should insure. By checking your policy has all these, you can have the peace of mind that you will not need to cover major business costs in the future.
Property Damage Coverage
This ensures your Lakeland investment receives protection from any number of issues that could cause harm to the property. These include:
- Storms
- Vandalism
- Fire
- Accidents
While the coverage may not stop the damage, it will cover you for repairs or replacements of anything that comes to harm. This ensures you can return to normality and start receiving income fast.
If you engage with Lakeland property management groups, they can help you get all the details you need for a claim. They can do this by conducting thorough property inspections that will give you detailed records of any damage. This way, you will receive the maximum amount from the insurance company.
Liability Insurance
This will ensure that you are shielded from liability from third parties who might come to bodily harm or face injuries on your property. If a lawsuit occurs, this form of landlord rental insurance can handle the expenses. It can also cover medical costs or compensation resulting from the incident.
Loss of Income Insurance
This type of insurance often comes alongside other forms of coverage. It ensures that the landlord does not suffer financial losses due to the location they rent out becoming uninhabitable. This is usually due to repairs, no matter the source of the damage.
A rental property management company can often get a lot of the work done to help you get the most out of such a policy. They can help to analyze local rental market prices and ensure the compensation you receive matches what you should get, for example. They will also often have a detailed record of your rental income, to help with the claim.
Legal Expenses Coverage
Sometimes you may need to handle a legal situation involving tenant disputes, evictions, or many other problems. Legal expenses coverage ensures you have the money to handle such a situation when it occurs.
A full-service property management group will be able to help with this. They often keep meticulous records related to lease agreements that will be useful in a legal battle. They will also often have an attorney on staff or on retainer.
Getting Help With Landlord Insurance
The above should help you understand the minimum insurance coverage you should look for when searching for a policy for your rentals. Still, attaining landlord insurance is only one of the many financial decisions you need to make for your rental business.
By working with property management companies, you can have the assurance that someone else is handling all this for you. We are experts in the field of rental management in the Lakeland area, so get in contact, and we can talk to you about your options today.
