Landlord Insurance – A Clearer Explanation
If you were asked to explain the difference between home insurance and landlord insurance would you be able to do so? A failure to have a good grasp of the difference between this two could have you paying dearly. Let’s see the difference.
It is the need that determines the coverage and to understand the need, we need to examine the situations closely. I think that would be the easier way to understand the difference in the two coverages.
If you own a home and live in it, then you would need a homeowner insurance. The other scenario is owning a home and not living in it. That is, you have tenants living in there. What you would need is a landlord insurance coverage. Let’s look at the reason for the different needs.
If we were to go by common thinking, a landlord is expected to take better care of his property much more than a transient tenant would. This is the basis of the entire difference. Insurance companies are also aware of the simple fact and base their policy on this. They therefore have to ask some question and factor in some possibilities.
If you live in your home and somehow damaged a part of your home, you would not go to make a claim for that because it is in most policies excluded. In most cases, making such claims could resulting in the insurer filing charges against you for trying to defraud. If however you make a claim on a damage caused by a tenant, your claim could be honored. Your being payed would basically depend on the extent of coverage you have.
Given the examples given above, it wouldn’t be out of place to think you now understand the difference between the two coverages.
Landlords, how can you save money as you get what you need, a landlord insurance policy?
One very important factor you should never forget is that the type of people you admit as tenants affects your rates tremendously. A simple rule you can follow in choosing a tenant is the work they do. Professionals are generally regarded to be steady and responsible. whether this is true or not, you want people who would impact positively on your insurance premium.
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