Landlord policies cover damage to a rental home whether due to fire, a break in, or storm damage. These policies do not cover any of the tenant’s belongings contained inside or outside the home.
Who Needs Landlord Insurance?
Anyone who rents out a home, apartment or a condo should protect themselves by purchasing landlord policy. Those who live in their home and only rent it out for one or two weeks per year typically do not need a landlord policy. In these instances, a traditional homeowner’s policy is sufficient. However, landlord insurance is a must for owners who rent their homes for the summer or that own homes as investment properties.
How It Works?
Landlord policies pay if an injury or loss was caused by neglect on the part of the landlord. If a tenant trips down the stairs out of clumsiness, the landlord isn’t at fault. However, if they trip over a loose board that is the landlord's fault. In this case the landlord policy will pay for medical bills and legal fees. This insurance also pays if the tenant starts a fire that damages the property or if a storm tears the roof off.
Types Of Coverage:
- Property Damage – Replaces or repairs the home and outbuildings, sheds, carports or fencing. In addition, it also covers appliances that are built into the structure of the home, such as heating and cooling systems, hot water heaters and kitchen appliances. It also pays to rebuild the home if it is destroyed
- Liability Coverage- This coverage is similar to the coverage in a homeowner’s policy. However, the limits are often much higher in landlord policies. This coverage pays legal fees and damages if a tenant or a visitor is injured on the property by something that is the landlord’s fault.
- Loss of Income- This coverage reimburses the landlord for lost rent if a home becomes uninhabitable due to damage.
There are a variety of other options that can be added to a landlord policy, such as guaranteeing rent or insuring furniture in furnished apartments or homes.