If you are a property owner who rents one or multiple residential homes, apartments or condos, you are a landlord. And, if you are a landlord, you need landlord insurance NY.
As a landlord, you need protection from financial loss in the event there are damages to your rental property. Whether it’s due to a fire, a break-in, a hurricane or other severe weather-related events, if your property cannot be rented out for a period of time, you could face a serious loss of income. Even if your claim is small, it could still cost you thousands of dollars…money that will come out of your own pocket if you are not adequately covered. That’s where Colstan & Associates can help.
Choosing the Right Coverage
With the right landlord insurance NY coverage, your investment will be protected. There are a number of important types of coverage provided by landlord insurance and a Colstan & Associates agent will help create a customized plan that works best for you. Your policy may include one of or a combination of the following options:
If a visitor comes to your property and is staying with your tenant and falls in the shower, you should not be liable as this incident would fall under your tenant’s renter’s policy. However, if this visitor fell due to some type of negligence on your part (broken stairs, icy walkways or cracked sidewalks) you have a liability claim on your hands.
Liability insurance will cover such costs as medical payments, funeral expenses and legal fees as well as judgement or settlement fees. Remember, a tenant can file a liability claim against you (the landlord) if your negligence (such as not fixing a leaky pipe) causes damage to their property.
To cover your physical property, such as the building itself as well as detached dwellings, and equipment located at the site(s) that is used to maintain the property, property damage insurance is needed. This policy will help cover costs to property that’s damaged by fire, severe weather and other covered losses. If you have detached structures on your property such as sheds, garages or fences, this policy will help pay for repairs. Personal property such as lawnmowers and snow blowers are also covered.
Loss of income:
If your rental property becomes uninhabitable due to damage from fire or severe weather, you will suffer loss of income. When you are unable to collect rent, this type of coverage will cover that loss. This is also known as “rental reimbursement.”
To protect your investment even further, take into consideration where your property is located, what the weather is like and the condition of your rental property. Depending on those factors, you may want to consider purchasing optional coverages such as:
- Vandalism-Traditional landlord policies do not cover damage to vandalized property so additional coverage may make sense for you.
- Burglary-Although your policy will help pay for repairs if a property is damaged during a break-in, stolen items usually aren’t covered.
- Under construction-A policy that helps protect a structure that’s being renovated or built is helpful while your property is still under construction.
- Building codes-This type of coverage may help reimburse you for costs you incur if you need to upgrade things such as wiring and ventilation.
Do I Need Landlord Insurance NY?
As a landlord, you’ve no doubt worked hard to maintain your investment. If you collect rent or manage property, landlord insurance offers you invaluable protection in the event of damages, vandalism, liability claims and loss of income. Even if you are renting out your own home temporarily or are sharing your home with others, whether it’s a basement apartment or a spare room, landlord insurance is vital to your peace of mind.
Remember, homeowners insurance does not cover rental units and will most likely not cover damage to your separate rental property nor cover liability claims. Also, keep in mind that, since being a landlord is a business endeavor, you are able to deduct the landlord insurance premiums you pay.
For more information about landlord insurance, contact a Colstan & Associates agent.