South Bend, IN, is best known for being home to Notre Dame and the St. Joseph River and is a popular place to live. Many people in this city own their homes, but many also rent.
People look for short-term and long-term rentals in this city, and if you're a landlord, you can take advantage of this. However, having the proper landlord insurance is critical.
Insurance protects you financially and mitigates your potential risks. Continue reading to learn how to safeguard your investment through the right types of insurance.
Understanding Landlord Insurance
Landlord insurance protects your properties and is similar to homeowner's insurance. However, you can only purchase homeowner's insurance for a home you live in. If you rent a house or apartment, you need landlord insurance.
Landlord insurance covers multiple things but doesn't cover a tenant's property. Tenants must buy renter's insurance to protect their assets.
Buying rental property insurance is one of the first things you should do if you're a first-time landlord. If you're new to this venture, you can learn about other tips for first-time landlords.
Key Coverages in Landlord Insurance
When buying a policy, it should include several types of coverage.
Property Protection
A typical landlord insurance policy includes investment property protection, which covers fire, water, and storm damage to your physical structures. There may be some exclusions, and your agent can help you learn these.
Liability Protection
A typical policy also includes landlord liability coverage. This coverage protects you against lawsuits people bring after incurring injuries on your property.
Other Coverage Options
You can also add extra coverage options, including tenant damage coverage and rental income protection. Every plan is different, and you can customize yours.
Benefits of Having Sufficient Landlord Insurance
Operating a rental property business without landlord insurance is risky, but buying coverage provides several key benefits:
- Financial protection for your investment
- Peace of mind for property owners
- Compliance with lender requirements
You can reduce risks of damage by keeping up with your property maintenance and through proper tenant placement strategies. These strategies help you find the best tenants, and great tenants care well for their rental units.
Choosing the Right Insurance Provider
Finally, you must choose an insurance provider for your coverage, and the best way to do this is by comparing your options. Start by looking for a local company and ask for a quote.
Next, ask for a few quotes from other companies and compare the quotes.
Protect Your Investment
Landlord insurance:
- Protects your investment financially
- Gives you peace of mind
- Ensures you meet compliance requirements
Consider your risks as you look for the best coverage. Additionally, talk to a property management firm.
PMI Michiana is a full-service property management firm in the South Bend Area. We are a husband-wife team that started our career in real estate in 2012.
Our experience has helped landlords overcome challenges and build successful companies, and we can help you. We assist with property management services and offer advice on landlord insurance and other related topics.
Get in touch with us today to learn more.
