A rental property is a substantial investment as well as a source of income for the owner. It is imperative to recognise that said ownership exposes one to risks. Amongst the risks are liability issues regarding the property is the behaviour of tenants and their visitors in the property. Landlord owned contents of the property such as appliances, heating and cooling units, water heater, are also at risk through behaviours of others, natural disasters, fire, flood, and many more. Unlike a primary residence, a landlord faces these exposures regarding their rental units, with little or no control on a daily basis.
A landlord may choose to insure the building, the contents or both. The amount of insurance provided by each cover suggested will be calculated upon the costs incurred if a total loss of the building and contents should unfortunately occur. For this reason alone, it behoves the insured to regularly inquire with their agent to keep their cover on all insurance policies at the correct amounts.
A cheap landlord insurance policy can eliminate or lessen the landlord's potential of financial losses and even legal liabilities. There are many perils covered in regards to the building in most basic landlords' policies: Fire, flood, lightning, earthquakes, subsidence, property owners' liability. The perils of nature are easily understood, property owners liability though bears discussion. The property owner faces exposure not only for maintaining the property, but may also be held responsible for harm to others or their possessions through the actions or inaction of the tenants. Medical costs and other benefits are covered to minimise liability costs of the landlord.
The contents may be insured from perils, at amounts that the landlord chooses. Many landlords may conclude that unfurnished units do not need content insurance. However contents include appliances, heating and cooling plant, water heater, and other major cost features to your building. If your units are furnished, those items are covered. The tenants' possessions would be covered by their own policy, if they purchase one.
When choosing the amounts to insure regarding the structure itself and the landowner owned contents, the landlord should consider how much of the costs they could afford to pay out of pocket if faced with a total loss. A property may cost significantly more to rebuild than it is currently appraised at. There are also the costs of demolition and debris removal.
A comprehensive, personalised policy can easily become a cheap landlord insurance policy by the by an informed owner choosing the correct coverage amounts and setting their deductible as high as they can afford, should they ever face a loss. As with any automobile or homeowner's policy, the more risk assumed through a deductible, the more affordable the insurance policy is.