Landlord insurance can be more complex than regular homeowners, so we’ve
created this guide to explain the landlord insurance lingo. Here are a few things to
know about landlord insurance.
What Exactly Is Landlord Insurance?
Landlord insurance is coverage intended to protect landlords that rent out their
homes, apartments, condos, and other residential buildings. If you have
homeowners insurance, this policy will only cover you. Therefore, we recommend
purchasing landlord insurance immediately after renting your house to tenants.
Why Do I Need Landlord Insurance?
If you’re living in the home and renting out a basement unit or a room, you’re likely
okay with regular home insurance – but contact your provider for any limitations.
But if you’re renting out a separate property that you don’t reside in, you’ll need to
purchase landlord insurance. Also, you’ll be required to have this coverage if you
have a mortgage on the property.
What Does Landlord Insurance Cover?
Landlord insurance covers financial losses that could arise from liability claims or
property damage.
Property damage covers damages to the rental property and any related physical
structures that are a part of the property. Damages could range from weather, theft,
fire, and more.
This policy also protects landlords from possible liability claims and lawsuits. For
instance, if a guest or a tenant were to slip and fall on your rental property, you
could face legal action. However, the liability protection policy helps cover the
accident’s medical, legal, and related costs.
Discuss your insurance needs with an insurance provider if you are unsure whether
a landlord insurance policy is right for you.
