A landlords building insurance is one of the most important insurance policies to have
. A building that is owned by a landlord and is not insured is a ticking time bomb. There are so many things that can go wrong with it that it's hard to even determine where to start. For example, a tenant could be smoking a cigarette and accidentally light something on fire. A natural disaster could cause the building to collapse and tenants could be injured. Even if nobody was in the building at time of collapse it would be almost impossible to rebuild without some type of insurance policy.
Landlords building insurance typically protects a landlord from potential liability due to negligence or other mishaps. Some of the worst types of buildings have cracked beams and are waiting to fall over. Luckily, a landlord that takes care of their building and has it located in a low crime area with good maintenance can receive lower premiums on their insurance.
A landlord has several different options when they want to lower their premiums. They can pay them yearly or bi-annually rather than monthly. They can also raise their excess so that they have to pay more upfront should they file a claim. A landlord can also adjust what their policy covers. Covering less than a fully comprehensive policy will cost less but leave the landlord open to more costs to be burdened.
Many landlords list it as one of their biggest expenses for their properties. Shopping around may show some landlords that they have been paying far too much for their policies. Other times landlords buildings insurance can simply not be had at a lower cost. There are some insurance companies that will not lower their prices below a certain point so that they can continue to make at least some portion of profit on the policy.
Tenants are typically not covered by landlords building insurance. Rather it only covers liability and the actual building itself. For example, a window being broken by a large wind storm or a vandal would be covered for the lobby area of a building. A stereo system that was stolen from a tenant's room or destroyed by a flood from a unit above a tenant's would need to be claimed with the tenant's renter's insurance company.
Despite the expense, neglecting to purchase building insurance can lead to a large amount of liability and the inability to pay for the building if it needs urgent repairs or has a natural disaster occur near it. Do not wait until it is too late to purchase landlords building insurance. Plan ahead by researching companies and getting a quote on a policy for your buildings.