If you’re a landlord, and own rental property occupied by tenants, then you need landlord insurance. Coverage provides you with financial assistance should your rental property become damaged or unlivable. You might have homeowner’s insurance for your residence, but that doesn’t cover damage to your rental property. It also doesn’t cover personal liability claims connected to your rental property.
How it Works
Landlord insurance covers you financially should a disaster occur to your property. You’ll have to pay a deductible, but the insurer will help you after that. If your rental property becomes uninhabitable, then the insurer will cover some of your income loss.
You’ll also receive liability protection. If someone is hurt on your property, liability will cover their medical expenses. And in the case of a lawsuit, your insurer will help with that as well. Other covered incidents include vandalism, damages caused by tenants, theft, storm damage, fire, and vandalism.
Based on your coverage, you may also have several other benefits. Loss of income pays if your building becomes uninhabitable. Rent guarantee helps when tenants leave without paying rent. Belongings that you place in the building are also possibly covered as well.
You should purchase coverage prior to admitting tenants into your building. Speak with an insurer to make sure you have the best coverage possible.