Landlord Protection Insurance

Rental Property can be a great investment, with the right insurance coverage.

Landlord insurance is the best way to protect your rental property and personal assets so that your investment supports your financial goals. If you currently own rental properties or are considering it for an investment, purchase landlord insurance coverage to support your success.

North Carolina Rental Property and Landlord Package Insurance

Landlord Protection liability insurance options protect you and your spouse or domestic partner against personal injury, wrongful eviction, or wrongful entry as well as other non-bodily injury claims such as libel and slander.

Extra Coverage Doesn’t Have to Cost a Lot

There are two types of insurance in North Carolina designed to protect the property and interests of landlords. While there are many similarities in these policies, there are also differences, mostly based on how the property ownership is structured.

Residential Property Owned in Your Name. If the residential rental property is owned in your name or the name of your spouse or other family member, you will need NC Rental Property Insurance. This applies only to rental units for four families or less. This is considered a personal property insurance policy.

Property Owned Through a Business Entity. When residential or commercial property is owned by a business entity, such as a corporation, LLC, trust, etc., you will need Landlord Package Insurance. This policy is used to insurance any type of property including a family residence, commercial building, or an apartment complex. This policy type is considered a commercial package policy.

Residential and/or Commercial Property Owned in Your Name. If you own and rent a commercial property and/or a residential property that houses more than four families, you will need to purchase Landlord Package Insurance.

Property Coverage

Both types of insurance includes coverage of the building. When insuring your property, consider:

  • Insurance to Value – Insurance carriers always require that you insure your property to 100% of the property’s replacement cost. This applies to both rental and primary residence and business properties.
  • Deductible – The deductible is the amount you will pay first in the event of a loss. You will want to decide how much you want this amount to be and understand its impact on your premiums. For example, the lower your deductible, i.e. the less you will pay out of pocket, the higher your premium costs.
  • Construction – How the rental property was constructed will impact the cost of insurance. The better the construction, such as steel construction vs. wood construction, the lower the premium.
  • Age – The age of the rental property will also impact insurance rates.
  • Additional Coverage Needs – Depending on where the property is located, you may want additional coverage for tornado, flood, hurricane or earthquake events.

Liability Coverage

Landlords, whether individuals or companies, have a high degree of exposure to lawsuits. This could be trip and falls, water damage due to faulty pipes, loss of inventory from water, fire and other damage, and more. You need liability insurance to protect yourself and your personal assets in the event that you are sued due to an issue with your rental property. Liability insurance is the area of greatest difference between rental property insurance and landlord package insurance.

The NC Landlord Package automatically includes both property and liability insurance. NC Rental Property Insurance carriers may or may not offer liability coverage. In these situations, you can obtain an “endorsement” on your personal homeowners’ insurance policy to extend liability coverage protections to your NC rental property. The amount of liability coverage you will want to purchase depends on the general maintenance of the property and its intended rental use. Without liability insurance, you could lose your savings, home, and more, so be sure to have this coverage in place.

Landlord Coverage Doesn’t Have to Be Expensive

Owning rental property as an investment is a growing trend, so more and more insurance companies are now offering landlord property and liability coverage. At James Insurance Agency, we specialize in landlord insurance plans and we represent the best insurance agencies in the state. Our expert agents will tailor a landlord policy specific to your needs and for a price that meets your budget. Let us help you protect your rental investment.

To find out more about this product and other products and services, contact James Insurance Agency today.

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