If you plan on or are already renting out property that you own, you may want to look into purchasing landlord insurance. Landlord insurance is made so that you don’t suffer any financial loss due to property damage or liabilities. Renting property is a good source of steady income, but you never know when something may happen that damages your property. Whether it’s damage from a fire or a burst pipe, it’s always better to be covered under insurance.
What is Landlord Insurance
Landlord insurance financially protects you from damages and liabilities that can occur on your property. When you purchase landlord property protection, it generally covers you from damages from fire, wind, hail, and lightning. Liability covers the costs of medical bills in the event someone is injured on your property and also covers. You can purchase extra coverage for the appliances on your property, or if you provide furnishing you can insure those, as well.
Why You Need Landlord Insurance
Anyone renting out a property should have landlord insurance. It covers you from property damage and liabilities. View your insurance policy as a financial investment. If you don’t have landlord insurance and something happens to your property, you could suffer financial loss.
What Landlord Insurance Covers
Depending on where you live, how many tenants occupy your property, and what you provide for them affects the cost of your landlord insurance and how much the insurance covers.
Additional landlord insurance coverages include vandalism, burglary, building codes, and if your building is under construction and something happens to it. Depending on your insurance agency, vandalism isn’t typically covered under a traditional landlord insurance policy, so if vandalism is one of your concerns, you should add it to your coverages.
Landlord insurance will cover the cost of damages from a break-in, but it doesn’t usually cover stolen items. If you are concerned about furniture or other items from your property being stolen, you should add burglary coverage to your insurance policy.
If you are renovating or repairing your rental you can purchase coverage to protect your property until it’s ready for inhabitants. If your property can no longer support inhabitants, you can potentially receive loss of income coverage for your losses while your property is repaired.
What Landlord Insurance Doesn’t Cover
Landlord insurance will not cover maintenance fees. If any appliances in your property break, you will likely have to pay out of your pocket to repair or replace them. If you live on your property and rent out a room you will most likely not be eligible for landlord insurance. Landlord policies are reserved for “non-owner-occupied” property. You can probably add extra coverage to your homeowner’s policy if you need to.
Your tenants’ belongings will not be covered under your landlord insurance. They will need to have their own renters’ insurance to cover their own belongings. As a landlord, you can require tenants to have a renter’s insurance policy.
Connect with your local insurance agent to further discuss landlord’s insurance and what coverage is best for your property needs.