New York Landlord Insurance
New York landlord insurance protects you in a number of instances. But what happens when you decide to leave your home and rent it out? You have homeowner's insurance as it is, but now you are ready to become a New York landlord and this entails something entirely different for you.
The question, however, is why is it you just can't leave your current house insurance as it is? The truth is that this is a mistake that homeowners wishing to rent their homes out make. It may be difficult to see that mistake, but this is because there are certain aspects of your landlord protection in New York that you may not really know about.
Your Current Property Insurance
You need to have New York landlord insurance because you have made the decision to become a landlord. If a homeowner were able to keep their existing insurance policy on the house, then no landlord would ever sign up for protection that is specific to them. Everyone would purchase a homeowner's policy and that would be it.
However, you must understand what your existing landlords insurance policy covers. For instance, it does cover the house itself. This is great because you are covered in the instance that there is a fire or another peril that damages it or destroys it. You are also able to insure your contents. This is great because you can replace your damage or destroyed items.
You also have liability coverage as a part of your New York homeowner's policy. If someone is injured on the property and they file a claim against you due to the accident, then you have the protection that you need against a lawsuit. The liability portion protects you against the financial damages that such a claim can cause if it is valid.
Your Landlord Coverage
It is through your New York landlord insurance that you are going to be provided a number of protections that are only provided to New York landlords. However, there are some aspects that are the same or similar. Of those that are the same or similar are the liability and contents insurance aspect.
The contents portion of New York landlord insurance is a bit different in that you can insure your contents within, but not anyone else's. The person renting from you will need to have their own renters coverage in order to insure their contents. You are not responsible for their items. So just because you have landlord insurance on the New York home doesn't mean that you are insuring everyone and everything.
You may want to require that your tenant carries renters coverage so that they are protected. This is doing them a favor and they must be insured before they rent the property from you. Many landlords in New York are requiring this for the good of their tenants.
In regards to liability, this is where you are going to see the main difference and that is that you don't have to be responsible for accidents inside the home. Because it is now a rental home, the tenant may be responsible. This is another reason why you may want to encourage them to have their own coverage. Your New York landlord insurance doesn't have to cover liability, unless you state in the lease that you will.
If a claim is valid, then your New York landlord insurance will take the financial burden off of you, which is very important. Not everyone has the money to pay a liability claim out of their pocket. This can result in the selling of assets, including rental properties in order to satisfy the damages.
And the main difference that exists between New York landlord insurance and regular homeowner's is that you can receive rent reimbursement if your tenant does not pay the rent. If the rent is not paid, you simply make a claim and you can have the rent returned to you. Because you are relying on renting your home as a form of income, it is good to preserve that income and this is one way in which you can do that.
And if the cost of New York landlord insurance is the issue, you can receive free quotes so that you can choose the policy that is right for you. You may find that the cost is very minimal. You may even find that the cost is worth keeping you from paying tens of thousands of dollars out in damages.
So as you can see, there is a difference between New York landlord insurance and a homeowner's policy and that is why you need to have the proper coverage for your situation. Don't leave your home to someone and not have the right coverage on it or you could actually experience a financial loss.