Landlord Building Insurance
Co-Owners and Co-Landlords Contents and Property Insurance Basics
Jan 28, 2008
Landlords and property owners who co-own property with family or friends need to buy the right insurance for their 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 to know about buying building and contents insurance for landlords or property owners who co-own 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. People who co-own vacation or rental properties with others need to have an insurance policy where they are the named insured in order to protect themselves in case of a loss. If a loss occurs and there isn't 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 purchasing building and contents insurance for landlords and co-owners, it's important to get the right amount of insurance for the risk. First, make sure there is coverage for the dwelling. If there is furniture in the 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 property owners if someone is injured on the 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 there isn't adequate co-owner or landlords liability insurance, the property owner will 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 Insurance for Rental Properties and Co-Owned Vacation Homes
If one of the co-owners states that they already purchased insurance for the rental properties or vacation home, ask to see the insurance policy. Chances are that there isn't adequate protection for every property co-owner. It’s not that friends, family members or business partners are trying to rip anyone off or save a little money by not buying landlords’ liability insurance. They may not know that unless everyone is listed as a named insured, there is no protection under the current insurance policy.
Get information about renter's insurance coverages.
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