8 Things to Check Before Signing Your Landlord Insurance Policy
Summary
This article from BiggerPockets, presented by Steadily, highlights the importance of thoroughly reviewing your landlord insurance policy before signing. Hosts should carefully examine the policy's components, including coverage types and exclusions, to avoid denied claims and financial losses, particularly regarding water damage, roof coverage, and liability.
Key Insights
- •Many insurers reduce roof coverage once the roof reaches a certain age, switching from Replacement Cost Value (RCV) to Actual Cash Value (ACV).
- •Landlord insurance policies should be carefully read to understand the coverage of water damage, liability claims, aging roofs, tenant-caused damage, and weather events.
Action Items
- ✓Before signing your policy, review the seven core components: declarations page, insuring agreement, definitions, coverages, exclusions, conditions, and endorsements.Effort: lowImpact: medium
- ✓Clarify liability and defense cost limits within your policy.Effort: lowImpact: medium
- ✓Verify whether your policy uses named peril or open peril coverage and confirm whether you have Replacement Cost Value (RCV) vs. Actual Cash Value (ACV).Effort: lowImpact: medium
Tools & Resources
- →Steadily: The article is presented by Steadily.
Common Mistakes
- ⚠Many landlords are shocked when something they assumed was covered appears in the exclusion section, making it essential to read before signing.
- ⚠Missing a condition, even accidentally, can jeopardize a payout.
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