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Is Landlord Insurance All that Different from Standard Property Insurance?

Even at the best of times, insurance can be a tricky and complicated business. Even when it comes to property insurance, you might be surprised how few people actually understand their insurance policy and are not quite sure what they are covered for. Indeed, deciding on an insurance policy for an investment property is no picnic, even more so if you’re going to be renting it out.

So where do you start if you have no experience? Some first-time landlords don’t completely understand the difference between landlord insurance and standard property insurance. Some may even think that they can get by fine by just getting property insurance, the thinking being that this basically covers anything that could go wrong and damage the house/property anyway.

But in reality, there are obviously a number of differences between these two categories of insurance that make it a considerable risk to ignore landlord insurance. Let’s take a look at a few of the differences and why landlord insurance is so important.

Why are their differences between the two?

It’s important to note that landlords have different insurance needs than homeowners, who are usually living in and own the property. This stems from the fact that each has different responsibilities, expectations and risk factors. For obvious reasons, a landlord has a higher level of risk than a tenant – more things can potentially go wrong.

For this reason, landlord insurance policies are essentially property insurance policies, with some added features or policy elements on top.

What are the additional policy elements?

One of the major risk factors that exist for a landlord is the uncertainty surrounding the tenant(s), which is part of the reason you need to select them so carefully. If a tenant is unable or unwilling to pay rent, suddenly a portion of your income is lost. Income protection, which is a feature of landlord insurance, covers you for this loss amount as well.

The potential is also there for a tenant to damage the property and/or contents therein, either accidentally or deliberately. If a homeowner damages their own property, it’s usually up to them to pay for repairs, however, in the case of a rental property, most landlord insurance policies will cover for damage by tenants.

Another consideration is the fact that as a landlord, you are responsible for the tenant’s safety (obviously this is true up to a point). If a tenant is injured or worse as a result of your negligence or something that needed fixing in your home but was not, you may be held responsible. Property liability insurance ensures that you are covered in these cases from any payouts that may be forthcoming.

Lastly, a good landlord insurance policy will cover legal costs that may come up as a result of a disagreement between the two parties. This can be a costly, long and tiresome process in most cases, so is generally avoided if possible. However often there is no resolution – again this goes to show how important it is to choose your tenants carefully.

If you are a first-time landlord, landlord insurance is a must (Tips for first-time landlord to become successful). Obviously, the best advice is usually to get a few investment property insurance quotes as well as looking at landlord insurance options, and figure out which minimises your risk the most relative to the cost. You may find that having two policies that cover different things may be more cost effective than investing in only one. Do your homework and you’ll be fine!

Author Bio:

David Nicoll is a freelance writer and an independent blogger who writes for insurance, rental properties insurance and landlord insurance related articles.


Common Misconceptions About Health Insurance

health insurance myths

“Access to health insurance has a tremendous payoff” -Randy Dunn

It has been said that among man’s possessions, the greatest wealth is found in health. True as this may be, men and women alike are often seen neglecting their health and putting it in the backburner in pursuit of trivial affairs such as vices and the utter disregard for stress and disease. However, even those who take excellent care of themselves are not immune to developing diseases as it can strike anyone at anytime. Anyone is susceptible and for this reason, we should be adequately prepared. Today, accidental health insurance and other forms of insurances have been developed to guarantee that the average individual may avail of health care services even in the event of shortage of funds. Unfortunately, most individuals resist the idea of buying health insurance thinking of it as an added and unnecessary expense. Others have been misinformed by misconceptions they have formed as regards it such as the ones listed below:

1) Smokers are not eligible for health insurance

A huge fraction of individuals fail to get their health insured for the reason that they believe that their smoking habit or dalliance with the habit in the past makes them ineligible for a health insurance, or else they would have to pay an exorbitant premium for it. While you may pose a higher risk for health insurance, this does not immediately disqualify you. Although you are required to undergo stricter health tests before health insurance would be offered.

2) Fit individuals need no insurance

Fit individuals have a feeling of invincibility and invulnerability about them simply because they choose to lead a healthier lifestyle by going to the gym regularly and maintaining a healthy diet. Although these are excellent things that would certainly keep you healthy, they are no safeguard to diseases you might develop. There are other factors such as accidents and genetic diseases you have no control over and might develop. With this in mind, it is still better to be prepared sufficiently.

3) Employer provided insurance is sufficient

More often than not, your employment will offer you some benefits and health insurance would be one of them. Unfortunately, should you need any surgeries or hospitalization, your employer provided insurance would barely cover the costs. Group insurance policies and individual ones have a stark difference and while your corporate policies might be useful, they would not cover your aging parents and dependents and may even require you to make additional payments.

4) You are paid only if you are hospitalized

Many individuals would not get themselves insured as they think they would only benefit from a health insurance when they get hospitalized or get sick. However, this is far from the truth as it is not always necessary to be hospitalized just to undergo a surgery. In some cases, you might develop scars, warts or any other ailments that would require only out-patient procedures which do not require any hospitalization at all. Additionally, some health insurance policies would extend beyond anything health related ailments and would also cover dental ones making it even more beneficial to those who are insured.