Landlord Insurance
It's important to protect your investment as a landlord. This insurance policy is likely to be different from one that an owner-occupied house would require.
Landlord insurance is also known as rental property insurance. It covers homeowners who rent out their homes or condo. This is what you should know before renting your property.
What Is Landlord Insurance?
Landlord insurance typically covers damage to the structure of your rental property that is caused by fire or lightning, wind, hail and ice. Although landlord insurance policies can vary from one policy to another, they may provide coverage for the following:
Property Damage:
Your landlord insurance might cover repairs or replacement if your rental property is damaged or lost.
Protection From Personal Liability:
This insurance policy is significantly different from standard homeowner's policies. If a tenant or other person files a claim against your landlord for injuries that were sustained at your rental property, you have landlord liability insurance.
Loss Of Rental Income:
This rental property insurance option can reimburse you for lost income if your property is declared uninhabitable by a covered loss.
Personal Property:
You may be eligible for coverage if you leave personal property such as appliances or a mower on-site.
What is landlord insurance not covering?
A landlord insurance policy does not generally cover tenants' personal property, normal maintenance, or wear and tear. Your landlord insurance policy may exclude coverage for damage due to a flood, earthquake, or water/sewer backup. Discuss with your insurance provider the coverage options available to you for your rental property.
What Is The Cost Of Landlord Insurance
Landlords often pay more for landlord insurance than if they were the owners of the property and had a standard homeowners policy. It could be small or significant -- it all depends upon your insurance provider and what type of coverage you select.
There are several factors that could affect the cost of your landlord policy insurance:
The location of your rental property
How many rental properties are you insuring?
Your rental property's condition and value
Additional coverage to your landlord policy
Do I Need Landlord Insurance?
Although a landlord policy is not required by law to cover tenants, it will usually provide coverage for any claims that may arise from tenant occupants of the property. These claims may not be covered by standard home insurance, so it is a good idea for you to talk to your agent and a local lawyer about landlord insurance.
What Insurance Is Best For Landlords?
Your choice of coverage will determine the best insurance policy for your rental property. Talk to multiple insurance companies to determine which cost and coverage option is best for your rental property. Every situation is different, so there's no one right landlord insurance policy.
What Are Other Types Of Property And Liability Insurance?
There are two types of insurance you can get that will benefit both you and your tenant, apart from landlord insurance.
Insurance For Homeowners:
This type of property insurance covers your residence and is required for homes with mortgages.
Renters Insurance:
This policy protects tenants and their belongings while they live in a rental home.
Landlord insurance vs homeowner insurance
If you rent out a room or the entire property, homeowners insurance may not protect your personal possessions. It also may not cover your liability if someone is hurt on the property. These situations are generally covered by landlord insurance.
Landlord Insurance Vs Renters Insurance
Although landlord insurance covers your personal property, such as appliances and furniture, it does not usually cover tenant property that is damaged or stolen. It's always a good idea to require renters insurance in your lease agreement and educate your tenants on the benefits of renters insurance.
