There are many people that are finding that they can increase their income and personal wealth through investment properties. If you are new to investment properties, you might think that a homeowner’s policy is what you need to protect your investment. When in reality, the best way to protect your investment property as a landlord is to purchase landlord insurance. There are many ways that landlords can benefit from this type of policy. Signet Insurance Group is here to talk about the difference between a landlord policy when compared to a homeowner policy.
Is a Landlords Property Insurance the Same as Homeowners Insurance?
There are some distinct differences between the homeowners insurance policy and landlord or rental insurance policies.
– Homeowners Insurance: Your homeowners insurance policy is in place to provide you financial protection in the case that a disaster leaves your home or belongings damaged for some reason. Homeowners insurance is vital for any homeowner to protect themselves financially in the case that disaster strikes.
– Landlord Insurance: This type of insurance policy is designed specifically for people who rent out their property and live off site. There are different policies depending on whether or not you offer a short term or a long term lease of your property. An agent can help you sort through which policies are better to protect your investment property. This insurance policy takes into account the fact that this property is a source of income. Therefore, if there is a disaster that happens not only will the dwelling and the things inside of it be covered, but also the loss of income is taken into consideration as well.
Difference in Cost Between Landlord and Homeowners Insurance Policies
One of the first questions that many people ask when they are deciding whether or not they need landlord insurance rather than homeowners insurance is the cost of the policy. On average, landlord insurance policies are going to cost about 25% more than a homeowners insurance policy costs. However, that number can vary when you take into account certain factors including age of the property, the value of the property, location, crime risk, etc. Insurance companies have to take into account the higher risk that comes with a rental property as well. For instance, there is a greater chance that claims will be made when the property is being occupied by renters. While there are some online calculators that can help you calculate an estimate on what you will pay for landlord insurance, it is always best to talk to an insurance agent or broker about your options.
Home, Business, Life & Auto Insurance Agency in Henderson, North LV, Reno, Spring Valley, Enterprise, Sunrise Manor, Paradise & Las Vegas, NV
If you feel it’s time to explore the world of landlord insurance to protect your investment property, you can turn to the brokers at Signet Insurance Group to help you find the best policy to fit your needs and circumstances. We will do the work so that you don’t have to. Call us today!
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