Landlord Insurance is an insurance policy that provides coverage for property owners who rent out apartments, condos and residential homes. Landlords require protection from financial losses that occur as a result of damages to their rental property from severe weather, fire, theft and other conditions. Therefore, landlords can purchase insurance to help cover these losses, as well as the loss of income from when their rental properties cannot be inhabited due to a covered loss. Each specific insurance policy has limits to the property damage coverage, and a deductible will be required to be paid to the insurer before being reimbursed. In regards to liability claims, landlord liability insurance can cover costs up to the limits on the specific policy once the deductible has been paid.
There are several major types of coverage under Landlord Insurance, and each policy may include some or all of each type of coverage. Property damage covers damage to the landlord’s buildings and personal property resulting from storm damage, fire, tenant damage, vandalism and theft. This insurance will also generally cover the replacement costs for the entire rental property in the case of a total loss. Liability covers a landlord against liability lawsuits and claims, whether it results from a tenant, visitor or trespasser that is injured on the landlord’s property. Therefore, the liability coverage assists in covering the costs related to bodily injury claims on the landlord’s property, whether they are associated with medical payments, legal fees, etc. The loss of income portion of the insurance coverage helps to compensate a landlord for lost income when the rental property cannot be inhabited as a result of a covered loss. Therefore, this coverage prevents a landlord from losing the income that they would have normally received when collecting rent from a tenant. Finally, a landlord may purchase additional coverage options such as natural disaster insurance, rent guarantee insurance, employer liability insurance and landlord contents insurance.