If you own a residential property you are renting in Austin, TX, do not assume that your homeowner’s insurance will cover all costs associated with a disaster, accident, or other damaging incidents. It’s highly likely that your homeowners’ insurance policy will only cover owner-occupied homes. As soon as the room is rented out, the coverage no longer applies, and the landlord is responsible for 100% of the costs associated with damages. Luckily, landlord insurance is able to help and includes three key components. Armadillo Insurance Agency can assist you with the details.

Coverage Provided By Landlords Insurance 

1. Property Damage: This coverage kicks in when your rental property or furnishings are destroyed or damaged in a covered incident such as a fire, natural disaster, electric/gas issue, vandalism, or irresponsible tenants. When searching for a landlord insurance policy look for one that offers replacement cost protection instead of the actual cash value to protect you best. 
2. Lost Rental Income: If your rental property becomes uninhabitable because of a covered incident, this coverage offers rental reimbursement to cover the rent money you typically receive if tenants are living in residence. 
3. Liability Protection: Covers the legal and/or medical costs if a tenant or visitor is injured at your rental due to a property maintenance issue or neglect. 

In addition to the three core pieces identified above, landlords have the option to purchase additional coverage for extra peace of mind. The most popular of these add-ons include guaranteed income insurance whereby, if the tenant fails to pay rent or pays less than the amount owed, this policy will cover the difference.

Give the Armadillo Insurance Agency a call for more information on landlord insurance in Austin, TX. We’ll take the time to answer all your questions and customize a policy that best meets your needs. 

If you are a landlord, there are many hats that you have to wear. However, as a landlord, you also need to look out for yourself. You need to protect your investment, as well as yourself. For this reason, you need to make sure that you have enough insurance to cover your real estate business. 

So, what do you need? Here are the types of insurance that you need for your business. 

Basic landlord insurance is like homeowners insurance. It is used to cover any damage that may occur to your property. Liability is also included. This will help you if anyone gets injured on your property. It will also cover legal bills if you get sued due to injuries. You may also have some loss of income coverage. 

Building code insurance. You may want to look into this type of insurance. This could be a lifesaver if you need to update your building to make sure that it is up to code. This will help to cover these expenses, which can be quite expensive. 

Non-occupied dwelling coverage. Though most basic plans will cover loss of income, the truth is that they won’t cover it indefinitely. It may help you pay your bills if the building is unoccupied for a month or so. This extra coverage will protect your investment for an extended period of time. 

If you truly want to make sure that you have enough insurance and are fully protected, you may want to talk to a professional. Here in Austin, TX, you need to contact us at Armadillo Insurance Agency. We would be glad to talk to you about your options.