Landlord insurance provides coverage for property owners renting out one or more residential homes, apartments, or condos. As a landlord, you need protection from financial loss that may result from damages to a rental property due to fire, break-in, severe weather and more. You can also get insurance to help cover loss of income in the event your rental units become uninhabitable due to circumstances beyond your control.
You need landlord insurance when you do not occupy the same residence as your tenant. You will also need landlord insurance if you are renting out your own home temporarily or sharing accommodations, such as your basement level, with a renter.
Some landlords rely on their homeowner’s insurance to cover their rental units. It is important to know that your homeowner’s policy most likely will not cover damage to your rental property, unless you are only renting out a portion of the home you are living in. It will also likely not provide coverage for liability claims.
Landlord insurance is important because it protects you from financial loss resulting from accidents, natural disasters, injuries and other liability issues associated with your rental property. It also provides reimbursement for loss of rental income and can cover any repairs or even the entire replacement of a rental property structure.
Are your renters yearlong lease agreements, or do you provide the residence for short term arrangements as well like Air BNB arrangements? That requires specific arrangements and a standard Landlord policy will not cover the residence properly without it. In addition, do you provide all the support to the renters or have you invested in a property management company to assist you with all those details? These policies can be complicated, so speaking with a licensed agent is normally your best bet.