Posted in Blog  
  on May 31, 2014

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.

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