Landlord Property Insurance
Apartments are a mostly an easy class of business to insure for most insurance companies. Some landlord property insurance will require replacement cost coverage, regardless of your purchase price. Where other insurance companies will write an Actual Cash Value policy, instead of replacement cost coverage. So know what kind of coverage you would want from an insurance company when requesting an apartment insurance quote.
The mistake many insured’s make is not requiring renter’s insurance for each of the tenants. Fully 83% of renters do NOT carry renter’s insurance, mistakenly thinking the Landlord’s insurance policy cover’s their belongings (since they are in the Landlords building).
The error in this assumption is that the Landlord has no insurable interest in the tenant’s belongings. The tenant who owns the 55” T.V., Surface laptop, expensive cell phone needs to cover their own belongings on a renter’s insurance policy.
The Landlord can and should require (we recommend) they have a renter’s insurance clause in their lease agreement. This would prevent any discrepancy in the responsibility of the tenant. If the current lease does not have this clause, the Landlord can always add an addendum to the lease and have the tenant sign the addendum.
This is critically important if the landlord allows dogs, has a tenant operating a small business out of the apartment (like tax preparing), or allows a swimming pool for the tenants children (Never recommended by us). Any liability claim would then be the tenant’s responsibility first, before it got to the landlord.
The landlord should also belong to a Real Estate Investor group (like ) to gain further knowledge on how to be a better landlord. These groups have monthly meetings, educational speakers and expert advisers at every meeting. Our group is meets the 4th wed. Of each month at Holiday Inn Airport at 7:00 pm, guests are welcome, $15 fee applies.
Always seek professional advice when it comes to real estate law, real estate insurance, accounting or lending. If someone isn’t knowledgeable about the needs landlord’s have, seek different advice. Landlords need to be properly protected against tenants, their guests and situations that arise due to their negligence.
Call the landlord specialists 716.684.3203