Landlords must understand why they need to have a rent indemnity insurance policy in place. Those who do not take the time to understand what this policy can do for them risk losing thousands of pounds in rent.
Firstly it is important to note that a regular home insurance policy will not cover rental properties. This is because rental properties are a source of income for the homeowner. The rental income and legal liability the owner faces by being a landlord needs to be covered by a rental indemnity policy. These features are simply not offered with regular home policies. Homeowners who take out a regular policy on their rental property will find that insurance companies will not accept any claims as they were not advised the property was rented out.
A landlords policy will cover any accidental or sudden damage to the home. It will also protect the rental income of the landlord if they get into a falling out with the tenant and both the parties need to go to court. Another circumstance that is taken care of by the policy is if the tenant takes off unexpectedly. Lastly the legal liability of the landlord will also be covered with this policy. This is very important as legal liability cases can have settlement figures that run into hundreds of thousands of dollars. The term "legal liability" covers any accidents or damage in the home caused by the landlord's neglect. For example if a guest falls because a wooden stairway was rotting they would have cause to take the landlord to court. In this circumstance the policy would cover legal expenses and the settlement agreed upon by both parties.