Landlord Insurance
is a form of property insurance that protects the investment of those
who rent residential property to tenants. It protects against many common forms
of damage to the landlord’s property, such as fire, smoke, theft, vandalism,
broken water pipes, leakage, impact from vehicles and aircraft, snow, hail, and
wind.
Most landlord
insurance covers the landlord’s building along with any fixtures and
furnishings (owned by the landlord) in the rental units.
What Landlord Insurance Is Not
It is very important
to understand that Landlord Insurance does not cover the
personal belongings of tenants. They need to purchase Renter’s Insurance to
cover their personal property (e.g. clothing, furniture, electronics, jewelry,
etc.).
Landlord Insurance
is not the same as Homeowner’s Insurance. It only covers rental
properties, and only on behalf of the owner.
Finally, Landlord
Insurance is for residential units only, not for those who lease space to businesses.
Business landlords need Commercial Property Insurance.
Who Needs Landlord Insurance?
Landlord insurance
is for those who lease one or more flats, rooms, condominiums, or apartments to
renters or tenants. It covers single family homes where only one room is rented
out, as well as entire apartment buildings and anything in between.
Things To Think About
If you’re in the
market for Landlord Insurance, you might want to consider a policy that
includes coverage for business interruption and personal liability.
This will help protect against renters who don’t pay on time, who stay longer
than they’re supposed to, and who injure themselves somewhere in your building.
Many Landlord
Insurance policies do not protect against floods and earthquakes. If you’re in
a high-risk area, you may be able to purchase additional coverage for these
events. Also, if you’re in an area at risk for hurricanes, wind damage may not
be covered in the basic policy.
Premiums may be
higher if you rent to students, allow pets, or have unemployed tenants.
Relevant EINSURANCE Journal Content
What is Landlord
Insurance and What Kind of Coverage Do You Need?
Renting Out Your
Home? You Need a Landlord Insurance Policy
Renters Insurance
Vs. Landlord Insurance: What They Do & Don’t Cover
Insurance 101: What
Is It, And Why Should I Care?
Insurance
Considerations for the Small Business
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