4 key benefits of landlord insurance in San Francisco, CA
November 2, 2021at4:00 PM
Being a landlord means being exposed to various risks — natural disasters, defaulting tenants, public liability… the list could go on.
Incidents that result in significant financial losses to landlords and property owners can occur at any time. Data from the Insurance Information Institute shows that the average property damage claim over the last seven years was well over $13,000. If you’re renting out a large multi-family building, the damage claim amounts can be much higher. That’s why it’s important to protect yourself with a solid landlord insurance policy.
What does a typical landlord insurance cover?
There are three primary tiers in landlord insurance coverage. Here’s what they cover:
Dwelling Protection (DP)-1 — This is the lowest coverage level and covers only basic incidents like vandalism and fires. If the property is completely damaged, the policy will pay the depreciated cash value at the time of the loss, instead of the actual cost of replacement.
DP-2 — This tier provides coverage for more incidents including tenant damage, some natural disasters, and car collisions into your property. The terms of the coverage are often very specific and so if an event is not included in the P-2 list, it is not covered.
DP-3 — Also known as open-peril policy, the DP-3 tier covers all instances of damage and liability, unless specifically excluded. It also pays the actual replacement costs in the event of complete property loss.
Unless specifically stated in the policy, landlord insurance does not cover general wear or tear. It may also not cover certain types of damage inflicted by the tenant, such as those related to fixtures and furnishings.
Important note: Make sure to always verify your policy to ensure that you are receiving the coverage that you need.
4 reasons to get a landlord insurance policy today
1. Protection against rental loss
A rental property is only an asset as long as it brings in income. Certain events like flooding or storms can render your property unlivable for some time, resulting in rental income loss. Landlord insurance can ensure the property is restored on time so you can begin earning rental income once again.
2. Coverage for damage
Sometimes even the best tenants can cause significant damage. A harmless game of backyard basketball can end in a smashed window or burst pipe, which leads to huge repair and replacement costs. Other times, the damage can be malicious resulting from flagrant vandalism. In any case, you’ll be glad you had landlord insurance to cover any financial losses.
3. Legal costs coverage
Tenant issues, especially those related to delayed rent payments, can sometimes require legal intervention. However, these types of lawyer services are not free. Even something as simple as engaging an attorney to issue a demand letter to the defaulting tenant can incur some costs. In situations like these, your landlord insurance can cover the resulting legal expenses.
4. Public liability protection
If you’re a landlord for commercial properties, this is one benefit you simply cannot do without. Public liability protection means you’re insured against injuries or death that occur on your property. If the tenant intends to take legal action against you, the landlord insurance can provide adequate protection and limit your risk exposure to financial loss.
Contact us for your San Francisco landlord insurance quote!
Gleetopia is one of the leading providers of landlord insurance in San Francisco, CA. We are a family-owned business with several years of professional experience under our belt. Talk to us about your insurance coverage needs today. You can count on our expertise to get you the best possible insurance packages and rates for your needs. Call us now at 888.707.7578 or fill out our contact form to get started.