What you need to know about landlord insurance
If you own a home or other property that you don’t live in and rent out, you need to carry insurance coverage as a landlord.
What is it?
Landlord insurance is a type of insurance that covers the property you own against damage, provides you a level of liability coverage and also pays you if your property is damaged to the point that you can’t rent it out.
Who is it for?
Landlord insurance is called that for a reason. If you are a landlord who rents out a house or other property for more than a few weeks out of the year, then you need to have a landlord policy. If you only occasionally rent out your main home or a vacation home, then you don’t need to carry a landlord policy.
How does it work?
Landlord coverage works just like any other type of property/casualty insurance, and in terms of the claims process, it is most similar to homeowners and condo insurance. If you have what you think is a covered event, you will need to make a claim to your insurer, which will assign a claims adjuster to determine whether you indeed have a covered event and what your loss will be. How the claim proceeds will depend on what the claim is. If the property is damaged, your insurer will pay to fix it, minus whatever deductible you have. If your claim is a liability one, your insurer will determine whether to go to court or to negotiate a settlement.
Types of coverage
Landlord coverage is typically pretty standard, without a lot of variation between policies, although your policy terms may differ somewhat depending on whether you own a house, apartment or condo.
The major benefit of having a landlord policy is coverage for damage to the property you own. Another benefit is reimbursement for lost rental income if the property can’t be rented. Additionally, the liability insurance coverage you get from the policy protects you from claims in case a tenant gets injured while living in your property.
Good Landlord Insurance
If you own property that is utilized for the purposes of renting to tenants, you will need to purchase some level of landlord insurance coverage.
This type of insurance is designed to protect the property you own against any covered form of damage or it protects you from the consequences of a person being injured on the property. It can also compensate you if your property is damaged to the event that you can’t receive income from renting it out.
If you are a person who rents out his or her house or other kind of property for more than a several weeks a year, then you will definitely need to investigate purchasing good landlord insurance. Should you only rent out your home or a vacation dwelling very occasionally, then you likely don’t need to purchase a landlord policy.
Landlord coverage functions similarly to any other kind of property and casualty insurance and, regarding the process of filing a claim, it is not that different from that of a traditional homeowners or condominium insurance policy. If you experience what you believe to be a covered event or accident, you will then be required to make a claim to your insurance provider. Next a claims adjuster will visit you to ascertain whether you have had a covered event and estimate what the cost of your loss is. Should your property be damaged, your insurer will then provide the compensation to repair or replace it. (This applies after you first pay your deductible.) If your claim is in regards to liability, your insurance provider will determine the appropriateness of going to court or perhaps choose to work out a settlement.
Landlord coverage is usually quite standard, without little variation between companies, although your individual policy terms can vary depending on whether you are the owner of a single family type house, apartment or condo.
The big plus in having good landlord coverage is the protection provided against damage to your property. Another helpful benefit is the potential for reimbursement for any lost rental revenue if the property is uninhabitable and can’t be rented out. Also, the safeguard of liability insurance coverage you obtain from the policy can make a huge financial difference, sometimes between bankruptcy and fiscal vitality, if a tenant were to be injured on your property.