As we find ourselves in the middle of the coronavirus pandemic, a lot of questions are coming up in the insurance world with regards to whether insurance policies can provide any relief to landlords for the tenant’s inability to pay. It’s unfortunately quite sobering to think of how many people have lost their jobs due to the current coronavirus pandemic. To date, unemployment claims in the United States are nearing 17 million, so it’s best to be prepared for an increasingly likely scenario in which your tenant cannot pay their rent. Would insurance cover this loss of rental income, and if so, what coverage would be needed? For landlords, it’s important to understand what is and is not covered – and why.
When talking about lessors risk insurance, most people don’t know what a lessor is to start with. This is because when talking about lessors, people generally refer to them as landlords. While landlords may be lessors, all lessors are not the technical definition of a landlord. (Think of a square/rectangle situation.) Recently, there’s been a rise in the amount of people interested in becoming lessors, whether it’s for student housing, apartment complexes, shopping centers, or any other type of multi-unit building.
While some entities know what they’re getting into with their investment, many others only have a vague idea of the risks they face. What’s more alarming is that many of these lessors never consider or buy insurance for their building. Although it’s not legally required to have lessors risk insurance (also called LRO insurance), not having coverage can leave you to deal with some serious losses if anything does happen to your building. If you want to become a lessor, here are 4 reasons to consider insurance coverage for your multi-unit rentals.
If you own an apartment complex, you might be worried that the insurance side of things could get complicated. You face a lot of risks as a landlord, both liability-wise and property-wise (apartment buildings aren’t cheap, after all!) It’s crucial to get the apartment complex insurance you need to protect yourself from the risks you face. There are many apartment complex insurance coverages you can consider, and we’re going to go over four of the main types of insurance you can consider for your apartment building.
We have discussed the importance of protecting your home with a security system & the cost benefits of a monitored alarm system. But what if you live in an apartment complex?
Do you feel that it is important to get a burglar alarm system for the apartment that you rent? Would you be surprised to know that apartments are 85% more likely to be broken into than a house? If you are an apartment renter then we hope you have your attention! Many apartment renters mistakenly assume that just because they don’t live in a house that they don’t need a home security system. Burglars just love false assumptions like this. If you rent a home, you might be thinking, “won’t the landlords insurance cover me in case a thief breaks in and steals my belongings?” Unfortunately, the answer is no.