A rental property can be the perfect income stream. Even so, you could be milking a bull without insurance. Although rental properties offer a steady source of income, landlords face many risks.
A lawsuit is a perfect example of unforeseen events that landlords face.
If you accidentally switch off essential amenities like water or electricity, the tenant can sue for breach of their right of ‘’quiet enjoyment’’.
You may also attract legal liability for other reasons, including wrongful eviction, financial disputes, or the tenant’s credit abuse.
Unfortunately, unforeseen events that attract legal liability can put the landlord in an awkward financial position. That’s where landlords’ insurance comes in.
A dedicated insurance plan offering coverage associated with the unique risks of owning and renting out properties.
If you’re looking to shield yourself from landlord-related risks, consider speaking to a professional commercial property insurance agent.
Landlord insurance has coverage dedicated to physical properties related to the building you’re renting out. It may include the physical structures, accessories, and installed equipment for building maintenance.
The property protection coverage has the following elements;
Loss may arise if tenants or visitors break into your rental properties and steal valuable items. Theft and burglary coverage will meet the cost of replacing the stolen items and other losses, such as changing the locks.
Usually, the building requires frequent repairs to fix damaged areas or as part of the regular maintenance routine. To keep up with building codes, you may need to upgrade your wiring, heating, or plumbing systems.
Building code coverage offers a cash injection to meet the cost of adhering to the new structural requirements.
Liability protection covers expenses such as medical bills or legal costs if someone is injured on your property because of your fault, for instance, for a tenant who slips and falls in the parking lot.
Following a lawsuit, the court could fine you for failing to warn tenants or installing a skid-free floor.
Ultimately, liability protection gives you peace of mind because of knowing you have a safety net in case something goes wrong.
As a landlord, you may rely on rental income as your primary source of livelihood. However, risks such as lawsuits, disrepair, tenants who don’t pay, or real-estate collapse threaten your financial independence and security.
With that in mind, it pays to shield yourself from rental-related losses and risks using insurance for landlords.
At Panorama Insurance Agency, we work with multiple insurers to find you the best insurance coverage for your business.
Contact us online or call us at 818.616.8026 to get a free quote.