Landlord Insurance: An Overview

Sep 30, 2021

Landlord Insurance

Landlord Insurance: An Overview
A policy for someone who leases out a residence they own is known as landlord insurance. This form of insurance usually comprises two types of coverage: property protection and liability protection. Both insurance policies are designed to protect you, the landlord, from financial losses.

Property Protection for Landlords

A landlord's insurance policy's property protection often helps cover physical things related to the residence you're renting out. The following items are usually covered in insurance:
  • Dwelling
If your rental home, condo, or apartment is destroyed by fire, lightning, or water, this coverage can help pay for repairs.
  • Other Structures
If your rental property's detached structures, such as a garage or fence, are damaged by a covered loss, this section of your policy will help pay for repairs.
  • Personal Belongings Used to Keep the Rental up to Date
If you leave a lawnmower or snow blower on the property, landlord insurance may be able to help cover the cost of replacing it if it is destroyed. Your personal belongings like furniture, bike, television set, on the other hand, are unlikely to be covered by your landlord's insurance coverage if you leave them at the rental property.

Protection from Landlord Liability

If someone is hurt on your rental property and you are found to be at fault, the liability section of your landlord insurance policy may help you pay for their medical bills or legal fees.

Additional Coverage to Consider

Depending on the neighborhood, geographic area, or condition of your rental, you may want to consider adding on some optional coverage to your landlord policy. The following are examples of possible coverage:
  • Vandalism
Optional coverage may be beneficial to help you pay for vandalism damage repair. Unless you acquire vandalism coverage, your landlord policy will usually not cover the damage if your property is vandalized.
  • Burglary
A typical landlord's insurance policy may cover the cost of repairing your home after a break-in. However, it generally does not cover the cost of replacing stolen items.
  • Rental property under construction
Are you tearing down or upgrading your rental or constructing a new home? Additional coverage may be available to help protect the structure until it is ready to be occupied.
  • Building regulations
If you are replacing or repairing a damaged portion of your rental building, you may be legally compelled to upgrade items like wiring or ventilation. This is because city or county codes may have changed since your home was built. This coverage may be able to assist you with reimbursing those additional expenses.

What Is Not Covered by Landlord Insurance?

While landlord insurance may cover costs incurred as a result of a variety of unexpected and unintentional losses, you will likely discover that the policy does not cover some items. The following items may be excluded from a landlord's policy:
  • Equipment breakdown and maintenance
If your rental property's furnace or dishwasher breaks down, you'll almost certainly have to pay for any repairs or replacements yourself.
  • Shared property
According to the National Association of Insurance Commissioners, you are unlikely to qualify for a landlord policy if you live on a property and rent out a room or another floor to a tenant. Policies for landlords are crafted.
  • Tenants' belongings
Your tenant's personal possessions are usually not covered by landlord insurance. Your tenants will need to acquire their own renters' insurance coverage to be protected. If you are looking to purchase landlord property insurance, talk to our insurance professionals at Fuller Insurance Agency. We are always available to help you get the right landlord insurance coverage at affordable prices.
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