Rental Property Insurance: Who Needs Landlord Insurance and What Does it Cover?

Landlord insurance also known as rental property insurance is a form of home insurance that is designed to cover the risks you may encounter when you’re renting your home. Rental property insurance will help to cover you for property damage, liability issues, and lost rental income. Regardless of whether you’re renting out just a room in your home or an entire apartment building landlord insurance is a great purchase. Rental property insurance is a good safeguard for your investment.

What does rental property insurance cover?

Landlord insurance coverage will be different from insurance provider to insurance provider. Although, most landlord insurance policies will cover the dwelling or the property structure, the contents of the home used to maintain it, liability coverage and loss of rental income. Rental property insurance is very similar to homeowners insurance, but it does have unique features that provide more coverage for landlords.

Dwelling coverage:

Much like homeowners insurance landlord insurance will cover physical damage to your home. This will cover the dwelling or structure of the property. It will cover the walls and roof but it will not cover the personal items of tenants. The coverage will only extend to damage from a covered peril. Perils such as fire and wind damage as usually covered under a landlord insurance policy.

Landlords personal property:

Rental property insurance will not cover your tenants personal property. If your renters want coverage they will want to look into renters insurance. Landlord insurance will include coverage for the landlords property used to maintain the property. For example if your lawnmower is damaged or destroyed there is a good chance rental property insurance will cover you. 

Liability coverage:

Landlord insurance will also provide liability coverage if someone is hurt or injured on your property. This portion of your coverage will pay for medical costs and legal fees. If you feel as if you need additional coverage beyond the coverage limits it may be a good idea to look into umbrella insurance so you’re fully covered.

Loss of rent coverage:

Rental property insurance will also cover any lost rental income if your tenant is forced from the home due to a covered peril. The coverage will usually extend up to a certain amount of time, typically around 12 months or a year. Loss of rent coverage isn’t always a standard feature in landlord insurance, you may want to check with one of our agents to make sure this is included  in your policy.

Rental Property Insurance Quote

If you would like a custom landlord insurance quote, or have additional questions about rental property insurance please give us a call today at 916 313 6100