What does Landlord Insurance cover?

Landlord Insurance protects the home or structure you rent and provides Liability coverage. Liability coverage pays for lawsuits against you or things that are you fault. For example, Liability protects you if your tenant sues you because the handrail was broken. Like Homeowner's Insurance, Landlord Insurance will protect your property against fire, lightning, wind, hail, etc. It will also cover you when dealing with tenants. 

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What impacts the Landlord Insurance cost? 

As with Home Insurance, the cost to rebuild the property largely determines how much you'll pay for Landlord Insurance. Size, age and construction type will all impact the cost to rebuild. The more it costs to rebuild the home/structure, the higher the price. 

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Personal Property 

If you didn't furnish the home, then you may save money. The tenant is then responsible for insuring any furniture or personal property they bring with them. If the home already contains landlord-owned furniture and appliances, then you'll pay more to cover those items.

 

Liability

It's up to you to decide how much Liability coverage is necessary. The greater the amount, the higher the price.

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Location

If the property is an a high-risk area, it will cost more to insure. 

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Alarm or Security System 

Burglar alarms may help prevent a robbery and potentially lower your cost of insurance.  

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Do I need Landlord Insurance?

Landlord insurance is not required by law, but most lenders will require it if you're financing the property or have a mortgage on it. Remember, your Homeowner's Insurance policy likely will not cover the home you’re renting out. That means any damage to the home, the belongings inside you own or lawsuits against you will not be covered unless you get Landlord Insurance. 

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Does Landlord Insurance cover loss of rental income?

Most insurers will protect the landlord against loss of rent in the event of a covered loss. For example: A tree crashes through the roof, your tenants can’t stay there and don’t pay rent. But, you won’t have coverage if your tenant can’t pay the rent because of a job loss or financial problem.

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Does Landlord Insurance cover tenant damage?

Typically, yes. To avoid these types of situations, landlords generally require a security deposit to pay for damages by a tenant.

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Does Landlord Insurance cover the cost of evicting a tenant?

Insurers usually don’t cover eviction costs. But, eviction insurance can be purchased separately from other companies.