People who own and rent out homes and other rental units will want to purchase a landlord policy. This includes people who are trying to sell their homes but have been accepting rent instead.
Homeowners insurance policies do not cover tenant properties. And without the coverage for structural damage, personal property used to maintain the home, and liability, you will be left unprotected if you do not get a landlord policy. The landlord policy will serve as the homeowners policy for a home you rent out and which is not your primary residence.
Landlord insurance policies cover damage or destruction of the property due to covered events. The dwelling is covered, as are other structures on the property, such as a shed, fence, or garage. Any equipment you store on the property and use to maintain the home, such as a lawnmower, can be covered as personal property.
Liability coverage protects landlords if a tenant or other person is injured on the property. The landlord policy will help pay the legal expenses and court settlements if you are found responsible.
You can also purchase coverage to help pay in the event of damages due to vandalism or burglary. Burglary coverage will not replace the stolen items—that’s what the renters insurance is for—but it will repair damage to the building.
For protection while the building is unoccupied due to construction, you can purchase coverage during the renovation. And if during construction or renovation you need to upgrade items such as electrical to bring the building up to code, you can purchase coverage to help pay for those costs.
Landlord insurance will not cover regular maintenance and equipment repairs. That’s your job as a landlord. These policies also will not pay to replace a tenant’s belongings if they are damaged or stolen.
If your tenants have to live elsewhere while the building is repaired due to covered damage, your policy may help pay lost rent. Otherwise, your policy does not pay if you simply lack a tenant.
Landlord coverage does not include flood damage or sewer backups. You will need to purchase a separate flood insurance policy.
Landlord insurance policies offer critical protection for your rental property or properties. It covers the dwelling, maintenance equipment stored onsite, and liability in the event of an injury on the property. To learn more about which landlord policy and optional coverages will best protect your interests, speak with an agent at Hometown Financial Group.
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