Being a landlord isn’t exactly like being a dairy farmer but there are some similarities. Of course, renters aren’t cattle, but as long as your rental property is occupied, you can make a profit. Dairy farmers have to protect their land so their dairy cows can thrive and produce milk. As a landlord, you have to have the right amount of protection so that you can protect your investment and keep it lucrative. Renting out a house can be a simple process. Renting out an entire apartment complex can be a bit more complicated. Both situations require Wisconsin landlord insurance.
If you are a landlord who caters to one or more of the 1.5 million renters in this state, it is important that you know exactly what must be disclosed before renting a property. Wisconsin mandates that all landlords inform tenants if:
Landlord insurance is similar to homeowner insurance. The purpose of securing a policy is to protect your finances if there is damage to the structure of your rental unit. When insuring the rental home, consider purchasing coverage at replacement cost value. This will be more expensive than actual cash value, but if a tenant catches the entire house on fire and you end up paying to rebuild, replacement value coverage will ensure that you have sufficient funds.
Similar to homeowners insurance policies, landlord insurance has certain exclusions. For example, flood damage will not be covered so you will need to purchase a Wisconsin flood insurance policy if you wish to have coverage against this natural disaster. It is important that you review the coverage exclusions of any policy before making a purchase.
One of the main differences between a homeowners insurance and landlord insurance is that, in most cases, you will not need to purchase very much in the way of contents coverage. This is because your tenants will be responsible for insuring their own property. Unless you are renting out a fully furnished apartment, you will need only to purchase contents coverage sufficient to cover such things as carpeting, light fixtures and any appliances you include with the rental unit.
As a landlord, you face increased liability risks. If one of your tenants, or tenant's guests, is injured on your property, you may be sued for liability if it can be shown that the injury occurred due to negligence in upkeep on the property. Because tenants may sometimes fail to report problems in the home, this can make for a tough situation, particularly when the courts have a tendency to side with the tenant in liability disputes.
The liability coverage included with your landlord insurance policy will cover you for any personal injury or property damage claims filed against you and will also cover any necessary court costs and legal fees that are associated with the case.
As a landlord, you face a variety of financial risks, so it is important that you obtain a suitable insurance policy. An independent agent in the Trusted Choice® network can answer your coverage-related questions and can help you compare Wisconsin landlord insurance quotes from a variety of insurance companies. This will enable you to find a great policy at an affordable rate. These independent agents will even advocate for you if you need assistance during the claims process. Find a Trusted Choice member agent near you today to learn more.