Insurance for Landlords in Minnesota

Author: Todd Christiansen | Category: Insurance

Landlords are optimistic people and so they tend to look at how they are going to finance their next investment or find the right tenant and don’t like looking at what could go wrong.  Insurance, in short, is not something you spend your time on.  And I think you should.

In this blog you will hear the problems that happen with tenants time and again.  Don’t get me wrong, many tenants can be excellent.  They pay their rent on time, they keep the place in good order and they are generally extremely pleasant to deal with.

And then they buy their own house.  Let’s be honest, if they’re model tenants, even if they are on Section 8 or they’ve taken a dive in their credit score, they will be the type to get their act together and get a deposit and persuade some mortgage company, even in today’s climate, to lend to them to get a place of their own.

Then you can get a less pleasant type of tenant.  The rent may be late, you may be threatened with some spurious claims on the Minnesota code and there may even be some malicious damage.  In all three of these situations the right type of insurance can save you some headaches, and this does mean getting the insurance from the right place.

Firstly with the rent being late, there is no way that ordinary owner occupier home insurance is going to cover this, although many types of landlord insurance policies cover precisely this sort of issue.  They do expect you to actually chase the rent and show that you’ve been chasing the rent, but insuring for non payment of rent is an option with landlord insurance.

Then you get the threats of spurious claims.  The legal insurance on a domestic insurance policy is going to be negligible.  Why?  Well you could get someone falling on your path as they try to deliver some junk mail, but the time that someone is on your property when you live in it is going to be minimal while the time that someone will be on your property when they live on it could be close to 24 hours in a day.

Finally there is the malicious damage.  Landlord insurance covers this sort of risk well, and prices it accordingly.  Domestic insurance providers very rarely see this type of damage.  Yes you may have some delinquents knocking down a wall if you live in a house, but they aren’t going to have the chance to block up your gas supply.

It’s because of these risks that many mainstream home insurance providers will simply invalidate your policy if they find out that you are renting the insured property out.  The idea that of course a domestic insurance policy may cover everything but it’s cheap is wrong for this reason as well as others.

Essentially you need some good advice and a wide choice of providers, and you need to get a specialist.  Where should you go?  Give these people a try.

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