Landlord Insurance: What is rental property insurance?

Dwelling fire policies can help landlords to protect a home that isn’t their primary residence. Rental property insurance also known as landlord insurance or dwelling fire protection is a must have for anyone looking to rent out a home, condo, single family residence, apartment building, townhouse or even a room in your primary home.

Landlord insurance is protection from financial loss in the event of a fire, smoke, wind, lightening, storms and other covered perils. Regardless of whether you’re renting a room or are a landlord as your chosen profession, rental property insurance can help you safeguard your investment. Please keep in mind that homeowners insurance will not cover you for all the risks associated with being a landlord.

What does landlord insurance cover?

Rental property insurance will help to protect your homes structure, from liability claims, loss of rental income, and your property used to maintain the home. The liability portion of your coverage will protect you from lawsuits in case someone visiting is hurt or injured on your property. 

Rental property insurance will also cover you much like homeowners insurance will, by protecting your investment from fire, smoke, lightening, wind, hail, and more. 

Do I need rental property insurance?

Landlord insurance although not a state requirement, is usually mandatory if you have a mortgage on the home. Typically the mortgage lender will want you to have coverage before they will fund your loan. 

Homeowners insurance more than likely will not cover the risks you’ll run into as a landlord which makes having rental property insurance just that much more important. This also means any damage to the home, the property inside the home you own, or lawsuits against you will probably not be covered unless you get rental property insurance.

Does landlord insurance cover loss of rental income?

The majority of landlord insurance providers will protect you against lost rental income if your tenant is unable to use the home while it is being repaired or rebuilt after being destroyed by a covered peril. 

Does landlord insurance cover tenant damage?

In short, yes. Although most landlords will require a security deposit to cover damages after the tenant leaves the home. This allows them to make repairs without utilizing their landlord insurance policy. 

Does landlord insurance cover the cost of evicting a tenant?

Landlord insurance providers typically will not cover the costs of evicting a tenant. Although, you can always look into extended coverage and get eviction insurance to cover you for this risk.

Does landlord insurance cover the tenant’s personal property?

Landlord insurance is not designed to cover your tenants personal belongings. Your renters will need to look into their own protection. The coverage they need is called renters insurance. 

Landlord insurance quote

If you would like a free landlord insurance quote or have additional questions regarding rental property insurance, please feel free to contact us at 916 313 6100