Landlord insurance covers you as a property owner when you are renting that property to someone else. Typically the policy has two parts: property and liability. Here’s what both of these parts mean, and why you should obtain landlord insurance.
Property protection typically covers physical property located at the home you are renting. This generally includes the dwelling itself, detached structures such as a garage or fence, and personal property on-site of the rental utilized for rental maintenance like a lawnmower. Property protection helps protect you, the landlord, from financial losses associated with fire, lightning, wind, hail, and other situations. This coverage usually has a deductible, and depending on the size of your policy, may have a maximum limit.
The liability portion of landlord insurance covers you in the event that your tenant or anyone else is injured on the rental property. This part of the policy usually covers medical bills or legal expenses. An injury to your tenant that the court finds to be your responsibility can get very pricey. Landlord insurance liability will cover you for those expenses up to the limit of your policy. There is typically not a deductible for a liability claim.
A few extras you may also want to consider include coverage for vandalism, burglary, renovation/construction, upgrades to meet code changes. You’ll likely find that some things are excluded from the policy’s coverage, so be sure to ask for the details of your policy. The policy also does not include coverage for your tenant’s personal possessions.
As always, give ALLCHOICE a call and we will be happy to handle your landlord insurance needs!