What Are Landlord Insurance Requirements

Do you have a rental property? Are you thinking about renting out your home to make some extra cash every month? A typical homeowner's insurance policy doesn't cover damage that is left by a tenant after a leasing agreement. You're going to need supplemental insurance for this coverage in the form of landlord insurance. Even though the costs are usually about 30% higher than a standard homeowner's policy, the benefits of the policy can pay off with the very first tenant.

What Does Landlord Insurance Cover?

For the most part, landlord insurance is a supplemental plan that covers some additional things that may affect your home. You'll see a typical policy will cover the structures on a property from ice, wind, hail, and fire. Some policies will also cover theft, which is especially important in cases where tenants have taken the copper pipes from a home to sell as they are leaving it.

If you are looking for a more comprehensive policy, there are also plans that can help a landlord protect their personal possessions that might remain with a unit while being rented as well. This is especially important for homes or apartments that are fully furnished and rented as such. You can also add riders to most landlord insurance plans that can cover other typical expenses that are faced, such as:

• Lost income due to the home being damaged and uninhabitable.
• Liability coverage in case there is an injury on the property or a lawsuit.
• Specific additional structures that may hold value to a property owner.

Every policy is different, so be sure to read the fine print and have an in-depth conversation with your insurance agent before finalizing any agreement. Some policies provide lost income for only 3 to 6 months, while others may cover these costs for up to 12 months.

Can Any Landlord Qualify For This Kind of Insurance?

If you have a rental property, then as long as the insurance policy that you sign up for as a landlord is valid in your state, you can qualify. As an added benefit, you may find that some landlord insurance plans also help to cover legal counsel or the insurance company may step in and provide the legal assistance themselves – especially if you're sued as a landlord for a loss that's been covered.

As a final note, it is important to tell tenants that this covers your belongings and your liability, not their own. Mandating that a tenant get renter's insurance is becoming very common because not only will it protect their belongings against something unforeseen, but it will also provide them with a level of coverage should something happen to the structure of them that they caused themselves.

If you rent out your home for more than just a week or two per year, then you need to consider getting landlord insurance. With the right coverage in place, you'll be able to make sure that your investment is covered from top to bottom from most environmental and negligent causes. Talk with a local agent today to get started.
Posted on May 31, 2014


Most Important Landlord Tenant Laws in Texas

When it comes to having a tenant for the first time, it can be pretty daunting because you are going to be the corresponding landlord and a new relationship will emerge, which will need time to grow... More

The Landlord Tenant Laws in California

The landlord and tenant laws in California are literally the same as they are in any other state. These laws, rules and regulations are put into practice because they uphold an order, a discipline,... More

Understanding the Landlord Tenant Laws in Illinois

People are aware that there are different rulings in each state with reference to the landlord/tenant laws. The state of Illinois also has a set of laws. These rules and regulations are basically... More

The Landlord Tenant Act: What Landlords Need to Know

All landlords know that before they can formally become a landlord there are a lot of things they need to understand. Landlords and tenants cannot act as such without any legal bodies involved. That... More

Essential Tenancy Agreements that a Landlord Should Have

When entering into an agreement with a potential tenant, a landlord needs to fully understand the contract that binds them into the specific relationship of being a landlord and a tenant. Now that the... More

Landlord Rights

If you’re currently considering the option of offering one of your properties for rental purposes, you should first educate yourself about the landlord tenant relationship. For the first timers, it’s... More

Holdover Tenancy: What is a Holdover Tenant?

Landlords have many things to think of; they have to deal with legal issues, privacy issues, and so much more. Above all, they sometimes need to deal with a problem tenant. The interesting thing is... More

What is a Tenant Estoppel Certificate?

Most landlords may have some idea what an Estoppel Certificate is. However, many aspiring landlords are still unaware of what this certificate is all about. Basically, a tenant Estoppel Certificate is... More

How to Issue a Tenant Warning Notice

Landlords have a lot of administrative work to do when they have tenants. It seems easy to let people come and live in your home, have them pay the monthly rent and carry out your daily activities.... More

Tenancy Sufferance and Tenancy Lease Agreements Myths and Facts

There are a whole bunch of myths about lease agreements that most people believe that are simply not true: You can't rent a property without lease agreement – Actually there are laws in every state... More