Landlords who are renting out a residential property (house, holiday cottage, apartment) for the first time may believe their homeowners insurance will cover all costs in the event of a natural catastrophe, accident, or other calamities. However, the coverage no longer applies if you start renting out your property.
If a fire, lightning, wind, hail, or other named peril damages the building (or other structures on the property, such as sheds or fences), landlord insurance will cover the costs. Yet, your tenants’ personal belongings won’t be covered under landlord insurance and that's when renters insurance kicks in.
Coverage Policies of Landlord Insurance
Landlord insurance provides coverage for:
Property Damage
This includes coverage in the case of a natural catastrophe, fire, electric/gas breakdown, vandalism, or irresponsible renters causing damage to the real estate or furniture. Typically, landlord insurance only covers goods required to maintain the rental property, for example, a snowblower or lawnmower. So, if you leave personal things behind that are not required to maintain the rental property, you are unlikely to be covered by landlord insurance.
While purchasing your Landlord Insurance you can choose between:
- Actual Cash Value: amount equal to the replacement cost minus depreciation of a damaged or stolen property at the time of the loss.
- Replacement Cost Value: amount of money required to replace the item with a new one of similar kind and quality (or to repair it, whichever costs less).
Lost Rental Income
If your property gets totally uninhabitable, lost rental income coverage provides temporary rental reimbursement to cover the rent money you’d otherwise receive if tenants were occupying the property.
Liability
This insurance covers any medical or legal fees that may arise if a tenant or visitor is injured as a result of a property maintenance issue (such as icy walkways, architectural collapse, or an out-of-control hive of bees).
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Landlord insurance policies provide vital coverage to protect your rental property investment. Click the button below to learn more and get a free landlord insurance quote now.
