Landlord insurance is a form of personal property and liability coverage for people who rent out homes, apartments, or condominiums to tenants. This type of insurance is for landlords who rent out a property on an ongoing basis.
A landlord policy typically covers:
The property itself – Damage to the rental property main building and additional structures on the property, such as sheds and fences. It pays for damages dues to fire, storms, theft, vandalism, or damage done by the tenant.
Associated items – Loss or damage to items that are related to servicing the property, for example, a lawnmower you store on the site is covered.
Legal liability – If a tenant or visitor is injured on the property, you could be subject to pay their legal and medical expenses and even lose income. This insurance provides protection for costs associated with bodily injury on site.
Loss of income – If the property becomes uninhabitable due to a covered loss, this insurance will help compensate you for lost income.
It does not cover:
Personal property unrelated to servicing the property – For example, furnishings, computers, bicycles, or clothing that you leave on the rental property will not be covered under a landlord policy. Although the base insurance doesn’t cover a landlord’s personal property such as furnishings, it’s possible to purchase add-on insurance that will.
Tenant belongings – Neither landlord nor homeowners insurance will cover loss or damage to a tenant’s property. It’s a good idea to suggest (or require) that tenants obtain renter’s insurance to cover these items.
If you’re only planning to rent out the property for a particular occasion, such as an industry or sporting event in your area, your existing homeowner’s policy may provide adequate coverage. Landlord insurance is for property owners who rent out property for an extended amount of time or regular periods.
