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Landlord insurance is specifically meant for the owners who plan to rent out their apartment or condo for a long period. It covers damages such as fire, natural disasters, or burst pipes. This insurance also offers protection if the tenant sues the property owner.

Landlord insurance costs 25% more than that of the homeowner. This sounds like a huge price when compared to the homeowner's insurance. But is it worth it? You can decide by weighing the pros and cons of the two insurance prices.

What type of landlord insurance do you need?

Landlord insurance policies include at least the buildings insurance and the owner of the property-liability insurance. You can choose to add any other insurance cover to the policy. This could be accidental damage, tenants' default cover, and landlord's content insurance.

Finding a great tenant is something that every landlord wishes to get. You invest heavily in buying a property, and when you lease it out, the only thing you want besides rent is someone who can keep your property in good shape. You can get expert assistance in property management in Colorado Springs from Evernest, NomadLease, Mynd or Barsala and rest assured that you are in safe hands.

Landlords' insurance is not legally binding, but you will be required to have an adequate building insurance policy by a mortgage. Below is a deeper explanation of the main types of landlord insurance cover you can apply for your building.

Landlords' contents insurance

This insurance covers furniture, decorative elements, and any appliance fitted in the building. But this insurance only covers the landlord's properties. And this means that the tenant will have to take out their insurance cover to cover all appliances or furniture.

If damage occurs to the properties insured, the insurance company will repair or replace the damaged items. This is only if the properties were damaged by the factors insured against.

Property owners' liability insurance

Property owners' liability insurance protects the landlord against compensation claims made by the tenant or any other visitor for damage or injury blamed entirely on the property insured.

Before this cover is given out, the insurance company will inspect the building to ensure everything is in place and nothing can harm a visitor or the tenant. This insurance policy covers compensation payout and legal fees.

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Landlords' buildings insurance

This insurance covers the cost of rebuilding or repairing the apartment if a flood, vandalism, or fire damage it. You can choose to get cover for the fittings and fixtures if you own an apartment and the freeholder is responsible for purchasing the apartment.

Accidental damage insurance

The accidental damage insurance cover will pay you or repair the building or replace entirely the contents stated in this policy if an accident happens. This could be a hole on the carpet or spillage on the carpet caused by DIY activities gone wrong.

As a landlord, if you buy the landlord's buildings insurance cover, then you can take accidental damage insurance cover to protect your apartment. You can also buy this cover if you have landlord's contents insurance to cover your contents.

The tenant's default cover

This insurance cover protects you if the tenants don't pay their rent for the next two months. Some of the default policies can cover up to about $25,000. Various reasons will compel the tenant to fail to pay their rent as expected. The most reasonable excuse for a tenant failing to pay rent is the loss of a job.

This insurance policy covers legal actions that you need to take in relation to your property. For instance, you could be pursuing unpaid rent by the tenants. You can also be seeking legal rights to evict a tenant from your house after failing to pay rent.

Landlord's buildings and contents insurance cover levels

The landlord's building cover you should take for the apartment is based on the rebuild value. This amount is always different from the market value. Remember, it's building the apartment again from scratch, not limited to labor and materials. It's better to hire a specialist if you cannot estimate the property's accurate value.

The cost of contents' insurance policy is based on the cost of replacing all the contents. This is the cost of the furniture and other appliances like a fridge. Estimating the accurate values for all the policies will ensure that you don't suffer losses in case damage happens to the buildings.

How much does the landlord's insurance cost

The price of the landlord's insurance depends on all the policies and levels you will pick during the application process. Specific details about your building also affect the cost of the insurance. This could be the age of the building, the type of tenants living there, and the location.

To estimate the cost of the landlord's insurance accurately, you can run a quick quote. For all types of the policies covered, the insurers will calculate the premium depending on the likelihood of the landlord making a claim and any possible cost of the claim.