As a landlord, you have made a significant investment in your property, and you probably want to protect it the best you can. You’re likely aware of the different types of home insurance for homeowners and renters, but did you know that landlord’s insurance is an option too? In this article, we are going to discuss the various aspects of landlord insurance and how it can benefit you.
What is landlord’s insurance and what does it cover?
Landlord’s insurance is specifically for people who own a home or apartment that they are renting out. It covers the following:
Lost Rental Income: If an emergency causes your rental property to become unlivable for your tenants, lost rental income will give you the money you would be collecting under ordinary circumstances. Examples of such emergencies are insect infestation or mold.
Property Damage: Landlord’s insurance provides you with coverage if your furniture or entire property are damaged by a fire, natural disaster, vandalism, etc. You could purchase a policy that covers replacement cost or actual cost value; while we recommend the first option, your insurance agent will be able to provide you with the best option for your individual situation.
Liability Protection: Your policy will help you pay for medical bills if your tenant or a visitor were to injure themselves due to a structural problem, such as an uneven floorboard.
It’s important to keep in mind that renters who are subletting do not qualify for this type of insurance.
What is not included in landlord’s insurance?
Generally, landlord’s insurance doesn’t cover a room or floor that you live in. For example, if you live on the main floor of your home and there is a flood, you might have to make a claim through your homeowner’s policy. Your insurance agent can provide more details on how these types of insurance differ.
You will also be unable to cover any damages to your tenant’s personal belongings because they are not included under your policy. Tenants can purchase their own renter’s insurance to protect both themselves and their belongings.
Lastly, at some point you might need to fix an appliance like a fridge or a washing machine. These repairs are your financial responsibility and are not typically covered under landlord’s insurance. We recommend asking your insurance agent about your options for covering necessary repairs.
Is there additional coverage available?
Similar to homeowner’s insurance, there are options for landlords that provide extra protection during an emergency. For example, if your rental property was vandalized, the repairs would not be covered under your basic policy. To avoid paying out of pocket, you might consider purchasing an additional policy that will help pay for expensive damages.
Extra policies include flood insurance and guaranteed income insurance, which covers a certain amount of rent if your tenant fails to pay under regular circumstances.
Protecting your investments is an important part of being financially stable. For more information on landlord’s insurance, contact Smyrl Insurance today!
