A Quick Guide to Landlord Insurance in New Jersey
Landlords rent out their personal property like a house, apartment, or cottage for the first time. You might think that the insurance will cover the cost of all the natural disasters, accidents, and other damages caused. But that is not true. If you own a residential property and are giving it for rent- get your Landlord Insurance.
Here is this post; we have mentioned why you need landlord insurance, a landlord insurance cover, and the cost of applying for the landlord insurance. So let us get started.
Why do you need landlord insurance NJ?
Undoubtedly, your insurance policy will cover owner-occupied homes. However, when you start renting your house to someone, the coverage is no longer applicable. The renters are not liable for any malfunctions, forest fire damage, thefts. It means without landlord insurance, you will be left with the threat of damage caused by humans or mother nature. This insurance policy comes in all shapes and forms.
What Does A Landlord Insurance Cover?
The perfect and effective Landlord insurance NJ will cover three major things. Here in this section, we have mentioned the major components that your landlord insurance will cover-
- Property Damage-
The Landlord Insurance NJ offers insurance for all the furnishing that suffers from any damage due to natural disaster, fire, earthquake, or due to the carelessness of the tenants. Try to get a policy that offers replacement cost and not the actual cash value or a fixed amount of cash.
- Lost Rental Income-
Many reasons will leave your home uninhabited due to termites, rat infestation, molds, and more, resulting in no rent for months. The landlord insurance NJ covers temporary rental reimbursement to cover the rent money you would have received from your tenants.
- Liability Protection-
The landlord insurance covers the medical or the legal cost that provides coverage for tenants or visitors who suffer from an injury due to property maintenance.
Additional Coverage of Landlord Insurance NJ
Other add-ons come with landlord insurance policies. They might not be necessary, but they always come in handy and help you save a lot of money in the future.
- Guaranteed Income Insurance- This insurance also offers compensation to the landlord if a tenant pays less rent or does not pay rent at all.
- Flood Insurance- Many landlord insurance policies offer coverage for damages caused due to floods, natural disasters, or municipal plumbing. The flood insurance coverage can be added to your Landlord insurance property if your property belongs to a flood-prone zone.
- Emergency Coverage- If a tenant asks you to fix leakage or any damage, this coverage covers some or all the travel costs and repair the damage.
- Other Construction Expenses- It covers all the expenses incurred in repairing the damage caused during the building up.
How Much Does the Landlord Insurance Cost?
The average cost of house owner insurance is $1,211, though the prices vary from state to state. Since the rental properties are prone to damage, landlord insurance pays 15% more on the same property. Additionally, there is an inverse relationship between the price of the insurance and the time of the property insurance.
Note: The landlord insurance is 15% more expensive than homeowners insurance.
The landlord insurance NJ is one of the most important insurance specially designed for landlords who rent their personal properties to others. Here in this post, we mentioned the importance of landlord insurance, the landlord insurance coverage, and the insurance cost.