Just as you wouldn’t skip homeowner’s insurance on your home, you shouldn’t overlook protection for your rental properties. As a landlord, it’s essential to have the coverage you need against financial losses and liability. Landlord coverage is a specialized type of coverage when you rent out your property. This type of insurance policy has two forms of coverage: liability and property coverage. Both work together to help you protect your investment and even shield you from lost income if the property becomes unlivable.
What Does Landlord Insurance Cover?
Landlord coverage covers residential rental properties, including single-family, duplex, triplex, and quad properties. A basic policy will protect you against:
Liability. Landlord coverage protects you against lawsuits and liability claims, including when a tenant, visitor, or trespasser is injured on the property or you are found liable for someone else’s property damage.
Property damage. Your building and any personal property in the building, such as appliances, are protected against covered events like vandalism, storm damage, theft, fire, and tenant damage.
Loss of income, which compensates you for lost income if the rental property is uninhabitable due to a covered loss.
A landlord policy will not cover maintenance, equipment breakdown, or tenants’ belongings. In most cases, you are not eligible for a landlord policy if you live on the policy and rent out a room or floor.
Benefits of Landlord Coverage
A homeowner’s insurance policy will not cover a rental property, even if you previously lived in the home. Landlord insurance offers protection against financial losses and liability issues like natural disaster, vandalism, theft, injuries, and even tenant damage. It can even reimburse you for lost rental income if the property needs to be repaired after a covered loss.
Landlord coverage is a cost-effective way to protect your investment and ensure you will not be personally liable for damages to your property. The premiums you pay can even be considered a tax-deductible business expense.