Landlord insurance: What does it cover & when do you need it?

Even if you only plan on renting out your home just for a couple months, it may be a good idea to look into landlord insurance coverage. Your standard homeowners insurance policy will not cover you in the same ways rental property insurance will.

If you plan on renting out the home for short periods of time or infrequently, the homeowners insurance policy you currently have may be all you need. Although you will want to talk with your insurance provider or one of our wonderful agents. 

On the other hand if you are planning on renting out the property for months or a year at a time, there is. Really good chance you will need landlord insurance to actually be covered for the risks that may be in front of you. 

What does rental property insurance cover?

If you’ve recently chose to rent out homes full-time as a source of income, rental property insurance is a must have. Landlord insurance can include the following coverage:

Dwelling coverage:

Covers the physical structure of the rental property if it’s damaged by a covered peril, including fire or a major storm.

Coverage for landlord’s personal property:

Covers items and appliances owned by the landlord, like dishwashing machines, washer and dryers, and items used for maintenance like shovels, rakes, and lawnmowers.

Liability coverage:

Covers legal or medical expenses if a tenant or visitor is hurt on your property and files a lawsuit.

Loss-of-rent coverage:

Also called fair value rental coverage, this reimburses you for missed rent payments if you’re unable to rent out property due to a covered loss.

Please keep in mind landlord insurance will only cover some of the landlords personal property. Typically your policy will protect all the items used for upkeep or to maintain the property. Items such as lawnmowers, tools, AC units, washers and dryers, dish washers and more. If you left behind a few personal items such as artwork, clothing or musical instruments, there is a really good chance your rental property insurance coverage will not provide protection for you. 

What does rental property insurance not cover?

Landlord insurance does not cover:

Tenants’ furnishings or personal belongings:

Rental property insurance doesn’t cover damage to a tenants’ personal belongings inside the rental unit. Your tenant will need renters insurance to cover their own property. Check out our guide to learn more about the difference between homeowners and renters insurance.

Maintenance issues:

Wear and tear or maintenance issues also aren’t covered by rental property insurance. Landlord insurance also doesn’t cover negligence, so if you knew about a gas leak and it eventually resulted in a fire or explosion, you likely won’t be covered.

Damage or loss while the property is vacant:

Rental property insurance won’t cover buildings that have been vacant for a certain number of days, so if the duplex you rent out has been empty for a few months and there’s a break-in, your insurer may not cover the loss.

Flood or earthquake damage:

Landlord insurance does not cover damage that occurs due to flooding or earthquakes unless you have additional coverage in your policy.

Rental property insurance quote

If you would like a custom rental property insurance quote or have additional questions regarding landlord insurance, please give one of our wonderful agents a call today at 916 313 6100