When it comes to rental property, one of the important thing you need to consider is protecting your investment. If your home becomes damaged or destroyed, you will have to foot the bill for repairs or replacement. In case of fire or flood caused by tenants, you could be liable for tenants' and your own losses. If you live overhead or in the basement, you could be left homeless.
Landloard insurance provides compensation for the losses you have suffered from accidents in the property. It is уоur first line оf defense against the many potential disasters that could occur in your rental property. Insurance companies consider a number of factors when determining the risk of insuring a property. Here are the five top risk factors you should know about when buying landlord insurance.
Geographical Location
The geographical location of your rental property is a very important factor when determining your insurance premiums. Here are things to watch out for when considering location:
If your property is in an area with high crime rates, your premium will almost certainly be higher. By contrast, you can get a slightly cheaper premium by insuring your property in a location with low crime area. If you own a rental property in a tourist area, you should factor this in. If you live in an area that is prone to natural disasters, you should factor this into your calculations when getting landlord insurance.
Price of Rent
The price of your rent is an important factor in calculating your insurance premiums. Yоur insurance broker will take careful note of the price of rent and size of the apartments.They also need to determine if you can afford to pay for a replacement in the event of damage.
Nature of the Neighbourhood
The neighborhood in which your rental property is located is also a very important factor. Here are some things to consider when determining the nature of your neighborhood: If your home is located in a neighborhood with high population density, you will have to рay more. If you're property is located in less populated area, then уou will have to pay less as уou will be considered as a lower risk. If you're property is in an area with high commute time, you will have to рay more. If your property is in a high-traffic area, you will have to pay more.
Age of the Property
The age of your property will be a deciding factor in calculating your premiums. This is because insurers will try to determine if the property is likely to sustain higher damage costs than it might have had it been built more recently. If your rental property is newer, then you will be considered as a lower risk and will pay lower premiums.
Number of Residents
This is also one of the most important factors to consider when calculating your insurance premiums. This is because insurers will try to determine if your property is likely to sustain higher damages than a house with fewer residents. If you have more residents in your property, you need to check your landlord insurance policy to see if it covers the premises, or if you will need to carry an additional insurance policy.
Conclusion
Landlord insurance is considered a necessity for anyone who has a rental property. You need to know that you are adequately covered in the event of theft, fire, or natural disaster.
New Wave Insurance offers landlord insurance to rent owners who want to secure their investments. Let us рrovidе the protection you need for your rental property. Contact us today to get started!