Landlord insurance is similar to a homeowner’s policy, except it covers the property that you rent out to tenants. The coverage extends to property damage, liability, and items such as lawn mowers that are left on site to maintain the rental unit. This is essential coverage for the owners of rental units due to the risks associated with renting properties.
This type of policy is for landlords who rent a dwelling that is separate from their own. This does not cover landlords who rent out a room in their house and typically wouldn’t cover an additional dwelling unit that is located on an owner-occupied property. The policy does not extend to your renter’s personal property in case of loss.
If your rental unit is damaged under a covered claim, the landlord will be compensated under the property portion of the policy. The insurance protects against liability claims such as injuries caused by failure to maintain the stairwells. If a tenant trips and falls while in the rental property and the landlord is at fault, the liability coverage will pay for medical bills and other associated accident claims. Landlord insurance also covers loss of income in the case that the building is destroyed due to a covered event.
There is additional coverage beyond liability, property, and loss of income. Landlords can supplement their policy by adding vandalism coverage to help repair your rental property. If the building is under construction, landlords may be able to purchase extra coverage while it’s being worked on. Contents coverage, employee liability insurance, and rent guarantee insurance are add-ons to consider.
Rental properties are a large financial investment and need to be protected. Landlord coverage protects from losing the rental property and your personal assets. The policy can help with legal fees and restoring the property after it’s been damaged by fire or other covered losses. Rental units come with hazards, but landlord coverage can help to mitigate that risk.