If you are a landlord and have landlord insurance on your rented property here are some things you need to know:
Many home insurance companies have different types of coverage that they offer to landlords, each with their own requirement, and different ways of handling claims. If you have purchased cheap land insurance, you will have saved a bundle up front but depending on the policy you have, it may end up costing you more in the long run should you need to make a claim.
So its important for you to know what your insurance policy covers. Whether you have cheap landlord insurance or not you must do this. Cheap landlord insurance generally offers you minimal coverage for things like loss due to fire or flood. If you have a comprehensive policy, provided that you chose to exclude any particular type of loss or damage, then you are completely protected.
When you are making a claim, the claims representative will make a determination as to what is covered, based on what caused the loss and what’s included in your policy.
If you have just the basic coverage, you may want to consider including optional coverage to take care of things like theft, loss of rent, damage to property, vandalism, natural disasters and liability.
To reduce your premiums have a look on the deductible options offered by your insurance company. There may be discounts available to you if you have a higher deductible. Higher deductibles mean you have a greater stake in the risk of insuring your property, which in turn gets you lower premium. Find out if there is any other discounts offered by your insurance company that you can take advantage of.
You should also find out your policy’s loss settlement method. Some policies have a “replacement cost” settlement, which pays you whatever is needed to replace your property. You however have to replace the property to get payment. Other policies have an “Actual cash value” settlement, which pays only the current value f your property. Actual cash value settlement policies have lower premiums than replacement cost settlement.
Depending on who has rented your property you may suggest to them that they get coverage for themselves. Chances are they will not need more than a cheap home insurance policy. There are many options available when buying cheap home insurance, and many companies will be able to facilitate them.
Every year review your policy to be sure you have adequate coverage. If you made any improvements to the property, you may need to adjust your policy accordingly to include the improvement.