Landlord Insurance is expensive. If you are a landlord who lives in a property which is also put up for rent, chances are you will be paying two types of insurance – a Homeowners and Landlord Insurance. If you just stick to one single insurance, your property or the rented property could never be protected against fire, robbery or other events that may cause property loss.

Although you will be saving a lot in your homeowner’s premium insurance if you live in your rental property, you will still be paying an extra fee annually or monthly. The premium can even be double if you do not live in your rental property.

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Joint Insurance as Alternative

Because of the exorbitant rates of the landlord insurance, the US government has created another type of property insurance which is geared for the landlords and the tenants. Called the Joint Insurance, this type of insurance is procured by the landlord and the tenant together.

Under this insurance, the landlord and the tenant pay for the premium together to protect not only the property but also the things owned by the renter. By having a Joint Insurance, the landlord pays a lesser premium while the renter pays almost the same type of renter’s insurance with additional benefits.

The landlord or the renter can approach the Joint Insurance Association located in their area. There they can apply for a Joint Insurance as they schedule an inspector to visit the area.

Once the application has been processed, an inspector will visit the property if it is worthy to be insured under this type of policy. The inspector will inspect the property and recommend changes, if any.  Usually, landowners will receive a rejection but the Joint Insurance Association will point out what changes should be made so that they will become eligible to this type of insurance policy.

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Common Reasons for Rejection

There are three factors that could contribute to the rejection of the joint insurance application:

1. Condition of the property – The property should be well maintained such as well established security or a working heating system. The inspectors will also check if there are certain damages that were not fixed.

2. Condition of the tenants – The inspector will also check if the tenants have access to basic needs such as water, heating and electricity. The tenants should also have enough space to move, that means they should never be overcrowded.

3. Background of tenants and landlord – The inspector will also have a background check of the tenants and the landlord.  If any of the party has a criminal record, the chances of being approved is diminished.

In real estate, the neighborhood and susceptibility to natural calamity can become an influencing factor in insurance. On the other hand, Joint Insurance will still be approved even if the area is a bad neighborhood or in the area that could be affected by calamity.

Landowners require this type of insurance to their renters if they want to save on premium while insuring their property against different types of damages.