So, you have struggled and have finally built your lifetime investment — rental property. Well done. Wondering how to protect your investment for ages? You should consider getting landlord insurance in California.
Landlord insurance covers tenant-related risks that are not present in your building insurance policy. Being a landlord for the first time, you may not be aware of the most common claims that property owners should know.
Loss of Rental Income
Tenants may experience financial difficulties, such as loss of a job or diagnosis of a life-threating illness, and these may leave them unable to pay their rent. This financial strain may, in turn, paralyze a landlord’s source of income, especially if they are paying for the rental property’s mortgage. In this scenario, a landlord insurance policy can cover you for the rent loss.
A Tenant’s Death
Although it is not uncommon, a tenant may die, and this is as much a blow to the family as it is on the landlord. You need to be compassionate about the tenant’s family, ensure the tenant’s property is safe, and obtain the relevant paperwork. If the deceased’s name is on the lease solely, you are worth the compensation for the loss of rent as a result of the death.
Malicious Damage to Property
Damage to property is the second top insurance claim by landlords. This can leave you with huge replacement and repair costs. Malicious damage may include holes in the wall, stripped off paint, and damaged doors and windows. A landlord policy may be helpful in accidental damages, but a contents insurance policy does not cover costs resulting from malicious damage.
Landlord insurance in California protects landlords financially when it comes to issues relating to property ownership. It’s an unmatched companion that every property investor should embrace.