When it comes to landlord insurance, it has only two types, the landlords insurance and the landlords content insurance. In landlord building insurance, the insurance benefits are offered only if there is some damage to the property. The damages should have been occurred due to some bad tenants or natural disasters like flood, earthquake etc. The insurance company provides the repair to the damages done to the property. People who have property in areas where there are more chances of being damaged or the areas where the chances of natural disaster are more, the insurance premium gets higher.
While in landlord content insurance, the insurance benefits are offered if there is loss of assets or contents inside the property. The content means the bed, sofa and even carpet. This insurance plan is best for those who have expensive furniture in their houses. Sometimes due to any natural disaster or bad tenants the structure of the house or building is not damaged, but the contents of the house become victim of these human created disasters. The benefit is usually made by cash very quickly by insurance company.
The landlords insurance provides its services in two different methods Real cash method and the replacement method. If the landlord wants to be paid by cash the insurance company will compensate the amount from the actual. While in replacement method the loss is replaced without deducting any amount of depreciation from the actual or current value of the asset or property.
Make sure that you do not get in to some fraud landlords' insurance company. Before saying yes to the insurance company, make sure that it is clearly known to you or it has good reputation in the market. Most of the insurance companies do not mention the complete terms and condition while making a deal. So read all the terms and conditions clearly so that you do not have to face any misunderstandings in future. Some people mix landlords' insurance with normal home insurance but they are completely different in all respect.
Some must simply find landlords insurance too expensive, my friend was staying in a house where she was uninsured and ended up with third degree burns from a boiler pipe.
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