The Purpose of Landlord Insurance
Rental property needs insurance coverage the same as your home. If you’re a landlord, then you need coverage to protect your rental property from financial losses and liability. Landlord insurance is a specialized policy specifically for rental property. Liability and property coverage work together to protect your investment and provide lost income if the property becomes uninhabitable.
What the Insurance Covers
Landlord insurance covers all types of rental properties. This includes single-family, duplex, triplex, and quad properties. A basic policy includes liability for protection against lawsuits and liability claims. This includes issues involving tenants, visitors, or trespassers injured on the property. It also covers property damage for your personal property in the building, such as appliances. And it includes coverage for damages from vandalism, storms, theft, fire, and tenant damage. If you have the loss of income option, then that will pay partial income when the building becomes unlivable.
The main benefit is the protection against financial loss that landlord insurance provides. It will protect your personal assets and rental properties from being loss during a lawsuit. And it’s a cost-effective way to protect your investment and ensure you are not liable for damages to others. You also might want to require all tenants to purchase renter’s insurance.