Property Management Blog

Virginia State Landlord Insurance

KRS Holdings - Wednesday, November 20, 2024
Property Management Blog

As a knowing and responsible landlord, you know how valuable your rental investment is. And to ensure you continue to reap the benefits that it comes with, you’ll need to protect it against potential risks. 

These risks can range from natural disasters like hurricanes and thunderstorms, to legal liabilities. Taking a landlord insurance policy cannot only guarantee you peace of mind, but also financial security in the event of an unanticipated circumstance. 

What is Covered Under the Standard Virginia State Landlord Insurance Policy? 

The following is a range of possible risks and liabilities that are covered under a standard landlord insurance policy in Virginia. 

  • Damage to the dwelling: A landlord insurance policy will cover any damage caused to the property’s physical structure. The insured situations usually include windstorms, fire, and vandalism. 

  • Secondary Structures Damages: Additional structures include fences, sheds, and garages. 

  • Personal Property Damage: Even if you aren’t living on the property, any personal property you have will be covered as well. The coverage will also extend to other things like any supplies, equipment, or tools you have on the property for upkeep or maintenance.

  • Liability Insurance: If someone is injured while on your property. This includes Accidents, such as slip-and-falls. 

Person working on computer

Optional Extras 

Depending on the risk profile of your investment, you may also want to take additional protection to safeguard your investment from potential damage. 

  • Loss of Rental Income: If the unit becomes uninhabitable due to an insured event, such as fire or flood. With the cover, it’d mean you’d get reimbursed for any lost rental income during that period. 

  • Cost of Replacing or Repairing Items: This can include things like carpets, furniture, white goods, and other furnishings. 

  • Legal Costs: If you face legal disputes related to things like eviction proceedings, property damage, or tenancy agreements. 

  • Accidental Damage: Any damages that can arise from the tenant’s negligent actions, such as broken appliances or accidental spills. 

What isn’t Included in a Standard Landlord Insurance Policy?  

The following are the items that aren’t covered under a standard landlord insurance policy. 

  • Tenants Property Belonging: Any damaged belongings belonging to the tenant are exempt from landlord insurance policy coverage. For the tenant to get protection against insurable perils like damage, theft, or loss, they will need to obtain their own renter’s insurance. 

  • Repair or Replacement of Equipment and Appliances: As a landlord, it’s your responsibility to ensure you repair and maintain your rental property. With that in mind, if an appliance breaks down, your standard landlord’s insurance policy won’t cover its replacement cost.

person repairing flooring

That said, if the appliance gets damaged by an insured peril, you can expect appropriate compensation. An example of an insured peril would be something like a fire or flood. 

Why is Virginia Landlord Insurance Cover Important? 

The following are some of the reasons why you should consider obtaining a landlord insurance policy in Virginia. 

Protect Your Property Against Possible Damage

Your Virginia rental property is at risk of damage from natural disasters such as floods, storms, and hurricanes. And these have the potential to cause serious damage to your property, resulting in significant financial burdens. 

A landlord insurance policy can help insure you against any restoration costs. In addition, you could also benefit from ongoing monthly rental payments from the insurer until the property becomes habitable again. 

Protect Against Daily Unpredictabilities 

Natural disasters aren’t the only hazards you should safeguard yourself against. There are other daily hazards that you should also protect yourself against. These include tenant conflicts, liability concerns, and excessive property damage. 

A landlord insurance policy can help protect you against most unplanned daily risks like burst pipes or flooding. 

Protect Against Unexpected Lawsuits 

Some tenant conflicts may require legal intervention to resolve. And this can open you up to expensive litigation and severe financial repercussions. A landlord insurance cover can help protect you against such financial obligations. 

Person going through documents

Protect Against Costs of Moving and Living Expenses

A property can become uninhabitable after a disaster strikes, such as a fire or extreme weather. In such a case, you’d be obligated to find alternative housing for the renter while your rental property undergoes repairs. This can take a severe toll on your bottom line without any insurance to meet the cost. 

With a landlord’s insurance cover, you can rest assured that the tenant’s rent and living expenses will be met for the entire period the unit will be undergoing repair or improvements. You may also get reimbursed for the lost rental income as well. 

Conclusion 

Savvy landlords in Virginia know that landlord insurance is essential for their long-term success. It helps guarantee peace of mind and financial stability even in the face of potential natural dangers and the unknowns that come with landlording. 

KRS Holdings is a reliable and professional property management company ready to help you with everything property management! Serving the areas of Richmond, Northern Virginia, and Hampton Roads we will provide you with a tried-and-tested recipe for optimum ROI and minimal stress. Get in touch to learn more!