Landlord Insurance in Vermont
What is Landlord Insurance?
Investing in rental properties can be both personally rewarding and financially profitable, but the practice isn’t without risks. Liability lawsuits and property loss are real potential risks that many landlords in Vermont face and ought to prepare for. Purchasing landlord insurance is one way property investors may protect themselves and their properties from some of these risks.
Landlord insurance policies are specially designed property policies that have been underwritten to meet the risk mitigation needs of property investors. Policies are widely available for single-family houses, short-term vacation properties, town homes, duplexes and multi-unit buildings.
Who in Vermont is Landlord Liability Insurance Right For?
Most people who invest in rental properties located within Vermont should consider purchasing landlord liability insurance. This includes sole proprietors as well as business owners who form corporations for their rental investments. For, the protections afforded by landlord liability insurance policies are generally different from what a legal structure might provide.
Moreover, landlords who take out a mortgage on their property are often required by the terms of their property loan to carry minimum levels of insurance. Lenders may not care whether landlords personally have landlord liability insurance in place, but they frequently insist that the properties they provide loans for are covered against certain sources of physical damage. Policies that offer liability protection typically also make these property coverages available.
What Coverages Are Available Through Landlord Policies?
Landlord policies typically provide a combination of liability and property protections. The landlord liability insurance protections usually pay legal fees and settlements associated with liability lawsuits filed by tenants or other parties. The property protections offered normally insure the covered building against certain causes of physical damage, such as fire, hail and wind.
Along with these two primary coverages, many policies also make some additional protections available. A few of the additional protections that a policy might offer are:
- Rent Guarantee Coverage, which may provide payment if tenants fail to pay rent
- Legal Assistance Coverage, which may pay for legal help in non-liability issues
- Loss of Income Coverage, which may provide payment after a covered incident
As is true with most insurance policies, the exact coverages that any one landlord policy offers can vary. An informed agent who specializes in this type of insurance can help property investors find a policy that has the coverages they need.
Are Landlord Policies Expensive?
The rates set for landlord policies are based on many factors and frequently vary as a result. Some of the items that might influence what a policy costs include:
- Where a property is located
- How large a property is
- How many units are in a property
- How a property is constructed
- Whether there are secondary structures on a property
An independent insurance agent can help landlords find out exactly how much different insurance companies would charge for the coverages they need. Independent agents are able to request quotes from multiple insurance companies in the state, which makes looking at different companies’ prices easy.
Are the Premiums Paid for Landlord Policies Tax-Deductible?
So long as a landlord policy is only used to insure an investment property, the premiums paid can usually be taken as a tax deduction. If a landlord policy provides coverage for both a property that’s both a personal residence and a rental investment, only a portion of the premiums might be tax-deductible or they may not be deductible at all.
Because tax laws change and must be applied to specific situations, landlords ought to speak with a qualified tax professional prior to writing off any insurance premiums as a deduction.
How Can Property Investors in Vermont Get Landlord Insurance?
For help insuring investment properties in Vermont, contact the independent insurance agents at T.S. Peck Insurance. Our agents have helped many landlords in the state insure a range of investment properties, and we’re ready to assist you with your landlord insurance needs.