Landlord Insurance

The Purpose of Landlord Insurance

Anyone who owns rental property faces several risks. And a homeowner’s insurance policy won’t provide all the coverage needed for a rental property. That’s why landlord insurance is specialized to cover properties that are occupied by tenants. It covers legal liability and property damage that landlords might deal with. In short, this insurance helps a landlord protect their real estate investment.

Landlord Insurance Coverage

Landlord insurance can cover several property types. Single-family homes, condos, apartment buildings, and more. And as for protection, the policy covers incidents such as property damage that occurs to the building, and appliances that belong to the building. Damage from events such as fire, vandalism, and tenant-caused damage is covered as well.

Liability coverage protects the landlord against liability claims. If the landlord is found liable, then this coverage will help pay the damages. There is also a loss of income option which becomes available should the property become uninhabitable. The insurer will compensate the landlord as long as the building is uninhabitable because of a covered loss, such as a fire.

Some incidents are excluded from landlord insurance. For example, the policy won’t pay for building maintenance or equipment that breaks down. Tenant belongings are also not covered. And in order to qualify for landlord coverage, the landlord can’t live on the same property.

Why Invest in a Landlord Policy

There’s always a risk when renting to tenants. Without landlord coverage, you’ll leave yourself open to lawsuits and other kinds of liabilities. And things such as vandalism, theft, injuries, and fires happen often in buildings with several tenants.

The extra expense is worth the cost. It a means of protecting an expensive piece of property from the threat of lawsuits and other issues. Plus, having coverage will protect your personal property from being used to pay certain expenses should you lose a lawsuit. Also, it may possibly count as a tax-deductible expense.