As a St. Louis property owner you should protect your investment with landlord insurance. This policy is similar to homeowners insurance, but for property owners. At Deca Property Management, we strongly encourage all our property owners to have a discussion with their insurance agents, to make sure they understand their level of coverage.
Breaking Down a Landlord Insurance Policy
A landlord insurance policy covers the structure of the rental property. It may also protect your finances in the case of severe St. Louis weather, fire, or damage from criminal acts. In addition, landlord insurance policies also provide you with coverage against injuries sustained by someone while on your property.
Structural damage to rental property is usually covered by a basic policy. This same policy can also protect fences, garages, retaining walls, swimming pools and out buildings in addition to maintenance equipment and gardening tools that you own and keep stored on the property.
Regular homeowners insurance and Landlord Insurance differ in one important way. That is coverage for any personal property, such as jewelry or clothing, is not included in a landlord insurance policy. Tenants living in your apartment buildings or rental homes are responsible for their own renters insurance policy to cover their belongings.
Landlord Insurance Coverage Options Worth Considering
A basic Missouri rental property insurance policy can provide coverage for the typical claims a property owner will face. Additional coverage can be purchased for things like lost rent, due to an accident or damage. Legal fee coverage protects against costs if a legal claim is filed against you.
Landlord Liability Insurance
Additional insurance clauses can provide protection both from medical and legal bills that arise from tenant injury, or the injury of a guest, if they occurred on your rental property. Usually the landlord will be held liable for harm that occurs because of certain injuries on the property. Landlord liability insurance provides a way to cover the medical expenses of tenants and their guests. It may also cover some legal fees.
Loss Of Use Coverage
Loss of use coverage is similar in purpose to tenant damage, but goes significantly further. This clause is intended to protect the landlord against damage that makes rooms or even the entire building uninhabitable. During repairs and inspections, you can’t rent out that apartment or house. The result is a significant loss of revenue. Landlord insurance will sometimes cover you for as long a year, provided it takes that long to finish the repairs.
Landlord Insurance vs Homeowners Insurance
When comparing landlord insurance vs homeowners insurance, there are a variety of factors you want to consider. Both are intended to cover the buildings and structures on property, but many insurance companies require you to live at the home to qualify for a homeowners policy. There are also key differences in how personal property coverage and liability coverage are structured between the two types of policies. Landlord insurance helps protect against risks specifically related to tenants and rental property. Homeowners insurance is generally more tailored to cover items in the home such as furniture, clothing and other belongings. Each insurance company structures their policies differently, so it is important to carefully review each aspect of the policies. At Deca Property Management we strongly encourage you to review your coverage levels and make sure you are well informed about your current policy to protect your investment with landlord insurance.