Landlord insurance, also known as rental property or investment property insurance, protects those who rent out property that they own. Specifically, it protects the landlord from loss and liability.
What does landlord insurance cover?
Coverage under landlord insurance is similar to a homeowners insurance policy. It covers:
- The rental structure and the property it sits on
- Structures on the property (such as a shed or pool house)
- Any elements inside the rental that the landlord owns
- Sometimes, belongings that you leave on the property, such as a lawnmower or snowblower
The policy protects all of these structures and items from damage including but not limited to:
- severe weather
- malicious damage
You’ll also have “loss of income” coverage, which compensates you in the event you lose out on rental payments due to the property being damaged or inhabitable.
In addition, this policy protects you from liability claims and lawsuits in the event that someone is injured on your rental property. And it covers you if you’re found responsible for damage to someone else’s property, including your tenant’s.
What does landlord insurance NOT cover?
This type of insurance does not cover anything belonging to the tenant from damage or theft. Although renters insurance is not required by law, you are within your rights as a landlord to require it of your tenants.
Make sure your rental property and investments are secure by building a comprehensive coverage plan with the agents at State Wide.