Landlord Insurance Policies
Being a landlord of rental properties comes with many responsibilities. One of the major responsibilities for landlords is to protect their property against loss, damage and liability.
When landlords accept rental payments from tenants, they are operating a business. An ordinary home insurance policy does not cover loss or damages associated with renting property.
There are two basic types of insurance for landlords - commercial insurance and residental insurance. Purchasing a landlord insurance policy provides coverage for the following types of occurrences.
- Property damage caused by a tenant.
- Personal liability to pay the expenses associated with tenants, guests and employees who are injured on your property.
- Financial losses that occur as a result of an insured event that forces a tenant to move away from the property.
- Lost rental income as a result of vandalism, flood damage and other natural disasters.
- Replacement locks and keys.
Landlord insurance does not protect the rental interest or personal property losses of tenants. Residential tenants must provide their own insurance protection. This insurance only protects the interests associated with a landlord's property and liability.
Although there is no legal mandate to purchase this type of insurance, many mortgage companies require landlords to purchase it prior to renting a property. It is always in a landlord's best interest to insure their property against loss or damage.
An unexpected event such as an accident can occur that will make you financially and legally liable. If you choose not to get insurance coverage, that decision can have serious legal and financial repercussions that will impact your future.
Landlord policies have certain exclusions and limitations. If a property is unoccupied for an extended period of time, a landlord policy will not cover loss or damage. In addition, a landlord policy may have other exclusions that are not covered. It is always a good idea to get a thorough understanding of the occurrences your policy covers.
A landlord policy can cost as little as $500 per year. A small investment can provide you with a peace of mind that is priceless.
Back to Home
Learn about Auto Insurance
Learn about Homeowners Insurance
Learn about Life Insurance