12:12 05 May 2013
If you have a building or other real estate property that you’re renting to other people, it’s very important to have landlord insurance. This provides coverage against certain circumstances that may require rebuilding the home.
For example, if your property is damaged due to fire or flood, landlord insurance will cover for the cost of the rebuilding.
One important thing that you need to know about landlord insurance is the building sum. This is the amount that your insurance company will pay you if your house is damaged due to specific reasons stated in your policy. Keep in mind that this is different from the property value.
Keep in mind that under ensuring your house is not an option. Although you may save on premiums, you may spend more if your house is caught on fire for example because your insurance company will not cover all the expenses. Worst, it might even reject your claim.
Blanket cover is your best option when taking out landlord insurance. With this type of policy, your house will be fully restructured. However, keep in mind that this coverage is more expensive compared to regular landlord insurance.
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