If you’re thinking about buying a multi-family property to let either all parts of the property or the parts you don’t intend to occupy, or if you’re considering renting your home while you travel around the world, you’ll need to find cheap home insurance for landlords. As a first-time landlord, you may not even know where to begin looking for this type of insurance, but this article will tell you exactly how to find the cheap home insurance for landlords that you need.
What You Need
Typical homeowners insurance won’t cover all the extras you need as a landlord, and this type of insurance doesn’t usually, in fact, cover any property that brings in a cash flow. If you’re living in part of the building you’re renting, or if you’re only renting your home for a short amount of time, you may be able to tack some landlords insurance onto your existing homeowners insurance policy, but otherwise, you’ll probably need to cover your property with a landlords insurance policy, which can also be known as a buy to let policy or a rental property policy.
Landlords insurance will cover the extra risks that are involved with buying a property to let. These risks include things like damage from tenants and possible lawsuits from tenants when they are injured by something unsafe on your property. A good landlords insurance policy will pay both the legal costs of a landlord-tenant dispute and the ultimate damages that are awarded to the tenant.
One of the key points when it comes to finding cheap home insurance for landlords is that you get a policy that has the coverage you need. You may need enough coverage to relocate your tenants if you have to rebuild your building, or you may need insurance that will cover your financial losses if tenants don’t pay on time or if the building is temporarily uninhabited due to damage. Before settling on a landlords insurance policy, talk with an insurance representative at length, and be sure that the policy you’re getting covers everything you need but doesn’t leave you paying for unnecessary extras.
Where to Look
If you already have homeowners insurance and are buying a second building to let or are turning your single-family home into a multi-family home, you might ask your homeowners insurance company if they also offer landlords insurance. Some companies do, and you may earn yourself a discount by holding more than one policy with the same company.
Alternatively, you can look through the internet, as many major insurance companies will give you fast quotes for cheap home insurance for landlords, which can be helpful. Another option would be to see if you can find other people who own small rental properties and to see where they get their insurance.
Renting out small properties can be very lucrative and an interesting business, but the start-up costs can be steep, and insurance is one of those costs. Since your insurance company incurs more risk with a landlords insurance policy than with a regular homeowners policy, your monthly premiums may be much higher, but if you use this advice, you should be able to find cheap home insurance for landlords so that you can get started on your venture.