Owning rental property can be one of the most profitable investments that you can make. Unfortunately, it can also be one of the most time-consuming and frustrating investments. When you own rental property, it’s vital that you have the insurance coverage that’s required.
Every state is different when it comes to the requirements and laws for landlords. If you’re looking to start renting property to tenants, or if you’ve been a landlord for many years, it’s imperative that you have the insurance protection that both you and your tenant will need.
Colorado Landlord Requirements
Having the proper insurance coverage can keep you from experiencing financial loss because of natural disasters, injuries, accidents, or any other liability problems. Having landlord insurance will help you pay for any repairs or loss of income that you experience because of these tragic events.
For any landlord in Colorado, it’s required that you have insurance, regardless if anyone is living in the property or not. This is one of the unique laws in Colorado that not every state has. When you’re looking to get landlord insurance, it’s important that you understand what’s being covered under the plan.
What’s Covered by Landlord Insurance Policies?
Several key parts are covered when you buy a landlord insurance plan. It’s important to note that each plan is different and some policies are going to cover various expenses while others won’t. In this article, we are going to explore some of the basic options that you can purchase.
The most prominent part of landlord insurance is liability insurance. This is one of the most important factors that could wreck your investment if you didn’t have the insurance coverage that you’ll need. Liability coverage would protect you against lawsuits if there were an injury on your rental property. For example, let’s say that someone was on your rental property, and they trip over a loose board or a hand railing breaks, and because of that, they break their leg. At that point, you would be responsible for paying for all of the hospital bills legal fees, and any other settlement costs. If something like this were to happen or something worse were to happen, you could be responsible for thousands and thousands of dollars of medical bills and other expenses.
There is another side of liability that could cause you hundreds of thousands of dollars of bills that you’re responsible for. If there is a leaky pipe in your rental property, but you don’t get it fixed, and it busts, then you’ll be responsible for paying for all of the repairs and replacements of anything that is damaged by the water. If you have a landlord insurance plan, the policy can help offset those costs.
Another key part of your landlord insurance plan is the loss of income portion of the policy. Depending on the situation, this could be one of the most important parts of a landlord insurance plan. If something were to happen to your rental property because of some disaster, like a storm or fire, then you can recover some of the money that you lost from the insurance company. If your rental property is one of the main sources of income for you and your family, it could suffer severe financial pains if something were to happen to your properties, but that’s where your insurance policy comes in.
These are the two mains parts of any landlord insurance plan, but there are some additional coverage that you can buy to fill in the gaps that a basic plan doesn’t cover. Some of these additional plans are employer liability insurance or personal property inside of the rental properties. Just like with a traditional homeowner’s policy, there are dozens of additional riders or subset of policies that you can have added to your plan.
Every landlord is different, which means that each person is going to require different insurance coverage for their properties. Our agents can help walk you through the process to decide which kind of plan is going to meet your needs. Not only that, but we can help give you the best rates for your insurance plan.
Longevity Brokers and Landlord Insurance
At Longevity Brokers, we know that being a landlord can be a difficult job. There are dozens of different factors that you’ll have to consider, and if something tragic were to happen to your property, it could completely change your life upside down. We know that it can be difficult to find the best insurance plans to meet your needs whether it be property insurance or auto insurance in Denver, CO. We are here to help you make the best decisions to protect every area of your life. We have years of experience helping individuals and landlords get quality insurance plans at an affordable rate. We work with thousands and thousands of clients in the Denver, Colorado area.
If you have any questions about landlord insurance, or about any of the quality insurance plans that we offer, please contact one of our agents today. We would be happy to answer those questions and connect you with the best plan available. You can use our contact page or call us at (720) 209-4598.