Landlords should protect themselves by insuring the homes that they rent out to tenants. Landlords have a bigger risk of damage being done to the home when they rent a home out compared to living it the home themselves. Landlord insurance policies can help cover the building that is being rented out, and any property inside the building that belongs to the landlord. The insurance will usually cover the home in case of a fire, earthquake, flood, explosion, lightning, theft, accidental damage, malicious damage done by the tenant and many other aspects. The policy provided to the landlord will specify exactly what is covered.
When something like a flood or fire happens in the home, the landlord will need to contact their insurance company. The insurance company will be able to look at the home and go over the insurance amount that will be provided to the landlord for the repairs. The landlord will be the only one to receive anything from the insurance policy. The tenants will have to have their own coverage in order to cover for their items that were destroyed in the home.
If the tenants left the building destroyed, the landlord will be able to use the insurance policy to help cover the funds. They are protected by their insurance if they were to take the tenants to court to help cover any costs that were out of pocket. The landlord will also get compensation for the months the home was unable to be rented due to damage. The insurance policy may cost more than homeowners insurance, but it may be a good option for landlords since they are renting out the home. This will ensure they are covered and get the money needed to get the home back into working order if something were to happen.