Becoming a landlord offers the potential for additional income and a more secure future. However, it also carries the risk of issues with tenants, and sometimes, landlords can face legal problems that result in costly court orders. While landlord insurance can help, it only covers up to the limit you arranged when you bought it. If you’re ever ordered by a court to pay more than what the policy covers, the rest comes out of your savings. But there’s an additional insurance policy you may want to consider, and Love Insurance Services in Niceville, FL can help you obtain it.
An Umbrella Policy for Wider Coverage
Even great landlords can find themselves in legal trouble; for example, if the maintenance person accidentally enters the wrong apartment at a property. Even if this was a genuine mistake, an annoyed tenant could file a lawsuit against the landlord (meaning: you) and create financial havoc through legal fees. Umbrella insurance can offer financial protection against issues like this.
The way it works is that, if you’re ordered to pay after a lawsuit, your landlord insurance coverage kicks in up to the approved limit. Then the umbrella coverage kicks in to cover the remaining amount, up to the limit you specified when you bought the policy. This does mean paying for two policies, but the premiums are much less expensive than trying to cover a court-ordered payment out of your own pocket.
If you’re about to become a landlord in Niceville, FL, contact Love Insurance Services. We’ll work with you to find the right policies to keep you protected.
