Kalamazoo & Portage Landlord Insurance Policies
What It Is:
Landlord insurance is a very special and unique kind of real estate insurance that is meant to cover the person who is legally defined as the landlord of a property. A landlord protection plan is, in essence, a commercial real estate protection plan. However, there may also be some personal protections ingrained into the property protection that would normally mark the end of a real estate insurance protection plan.
Who It Is For:
Anyone who is defined as a landlord under the law may benefit from having a landlord protection plan. Even if you are not a professional landlord, you may be defined as such if you have rental properties in certain municipalities. In this case, you may benefit from having a landlord protection plan in place.
How It Works:
A landlord protection plan will usually pay out after any property that is under the supervision of a landlord undergo some sort of damage. This damage may include damage that a tenant creates, acts of God, arson or thievery. However, an insurance company will usually not be on the hook for any payment until the deductible of the landlord has been paid in full.
Different Types Of Coverage In Existence:
The landlord protection plan that is covering a person with a single property will definitely be different from a landlord protection plan that a commercial real estate tycoon has. People with many properties are considered less of a risk to an insurance company. They will receive preferential treatment because of the assets that they own.
Because many real estate deals are highly leveraged, a landlord would usually have very little cash on hand to fix damaged property. The landlord protection plan saves a landlord from having to come out-of-pocket every time something goes wrong with a property that he or she owns.