Landlord Building Insurance
Co-Owners and Co-Landlords Contents and Property Insurance Basics
Learn more about buying insurance when you co-own a rental property or a vacation home with friends or family. Find out what kind of landlord insurance you need online.
If you’re a landlord or property owner who co-owns property with family or friends, make sure you buy the right insurance for your building and contents. One growing trend in the real estate industry is tenants-in-common property ownerships, where several people go in together to buy a property. This practice is nothing new; for years, businesspeople have partnered with investors to buy shopping malls, theaters, restaurants and more. On the tip of the new trend is when regular folk go in together to buy a property, usually for vacation purposes or rental income. What you need to know about buying building and contents insurance when you’re a landlord or property owner who co-owns a property with friends or family (or both):
Unique Building and Contents Insurance for Landlords or Co-Owners
Insurance for the co-owners or landlords of a building and its contents is separate and unique. In other words, there’s no one size fits all landlords’ building insurance policy or one contents insurance policy for all of the landlords or co-owners. If you co-own vacation or rental properties with others, you need to have an insurance policy where you are the named insured in order to protect yourself in case of a loss. If a loss occurs and you don’t have adequate building, contents and liability insurance, only the insured landlords or co-owners will be reimbursed for their share of the loss.
Co-Owners and Landlords Contents and Building Insurance Policy Coverages
When you purchase building and contents insurance for landlords and co-owners, you need to get the right amount of insurance for the risk. First, make sure you have coverage for the dwelling. If you have furniture in your rental property, contents insurance is also a must.
Landlords Liability Insurance Policy Coverages Are Critical
Liability insurance for landlords and co-owners is a critical component of the insurance policy. Liability insurance protects you in case someone is injured on your property. A lot of people assume if they keep liability limits low, they won’t have to pay as much in case of a loss. In fact, the opposite is true. If you don’t buy adequate co-owner or landlords liability insurance, you’ll be liable for additional amounts that have to be paid for medical expenses for the injured party above and beyond what the insurance policy will pay.
Buy Your Own Insurance for Your Rental Properties and Co-Owned Vacation Homes
If one of the co-owners tells you they already purchased insurance for the rental properties or vacation home, ask to see the insurance policy. Chances are that you don’t have adequate protection. It’s not that your friends, family members or business partners are trying to rip you off or save a little money by not buying landlords’ liability insurance for you. They may not know that unless you are a listed named insured, you have no protection under the current insurance policy.
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