Generally, a landlord insurance will insure the building from accidents or natural disasters like earthquake, fire and explosion, storm and flood, and theft and malicious damage. Some landlord insurance also provides the provision of Rent Guarantee. Other words, the insurance company will cover the payment to landlord’s rent, if the tenant fail to pay for any reason. It is important to understand your policy before purchasing one, because each policy is unique and different. It may or may not cover all these terms. When you talk to the insurance broker, make sure that he/she explains the policy to you thoroughly. Don’t hesitate to ask question.
If you find that your proposed insurance plan does not cover everything that you may need, you can always ask for extra coverage. For example, you can ask for accident damage and rent guarantee cover. However, the chance is you will have to pay more for the extra coverage.
It is also a good idea to check out different insurance brokers, before buying one. Doing your homework is important, because it will give you the power to negotiate. |
