Renting a property is not just about receiving money in exchange for the use of that property. It also comes with responsibilities that must be taken into account, such as having landlord insurance, perhaps the least popular of all.
In our country there are more than 35 million inhabited private homes, according to the National Institute of Statistics and Geography (INEGI). The figure includes houses, apartments and even premises not built for residential use .
42% of people live in a rented house. This same percentage, in their own home, while the remaining 16% rent their home to third parties, according to the 2019 Mexican Home Purchase Intention survey , conducted by the Vivanuncios portal .
To choose the right product, it's important to know the difference between homeowner's, renter's, and landlord's insurance. In general, they all cover claims within a property, but each one is designed to respond to different needs.
- homeowner insurance
It covers both construction and belongings. Most insurances offer support in case of accidents, such as theft, fire and damage to third parties. It should be noted that they can cover earthquakes or floods, and the cost of these coverages will depend on the area of the country where you live.
- Renter's or renter's insurance
Protects the belongings of people who live in a rental property. Protect your valuables, such as appliances, appliances, electronic devices or clothing. They offer coverage in case of theft or damage, among others.
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- landlord insurance
Like home insurance, it supports you against possible property damage. A particularity is that this product does not cover the tenant's belongings and protects the owner of the property even when the owner does not live there.
Advantages of having landlord insurance
Prevent a loss or accident from affecting your assets, especially if someone else will live in it. If you are still not convinced to take out landlord insurance, review the following advantages:
- Coverage for damage to your property
It helps you protect your property in case of accidents such as fire, lightning, flood or earthquake.
- Third party damage coverage
It is vitally important that when you take out landlord insurance that it covers damages to third parties.
Consider this example: a pipe breaks and this affects your neighbor's property. You must cover these expenses. Therefore, it is better to be safe than sorry and be ready for any kind of unforeseen event.
- Loss of income coverage
It helps you cover the income that you will no longer receive if the rented house suffers an accident covered in the example policy (fire, earthquake, flood).
With the trend of vertical buildings, in many building complexes it is already mandatory to have coverage for third parties, given the proximity to neighbors in any direction and possible risk for everyone.
Each case is completely different and many factors are relevant when purchasing landlord insurance. To get the best product, tailored to your needs, it is best to contact the experts.
Bruno will give you all the necessary guidance to contract the appropriate coverage for the property that you are willing to offer for rent. Are you ready to make your real estate business disaster-proof?
I invite you to continue exploring this blog, which we made to give you as much information as possible about your safety and that of your loved ones. Until next time!