Landlord insurance protects you, the landlord, from certain monetary losses. The policy provides coverage for the space that you rent to tenants. The policy will also cover belongings that you’ve placed in the building, such as lobby furniture. This insurance does not cover the tenant’s property, so they need renter’s insurance. But the landlord coverage will cover their property if it is damaged or destroyed by the landlord.
Is Coverage Mandatory?
This policy is recommended for landlords, but it isn’t mandatory by law. It helps financially in the event of unprecedented damages. This includes damages caused by fire, lightning, explosion, theft and many other causes. Check with your policy to be sure about what is or is not covered.
How it Works
You file a claim with the insurance company if your property is damaged. The company will deny or approve the claim. Unless the claim is denied, the insurance company will help as promised.
You can choose from several types of coverage. Here are some of the most common.
Contents insurance covers your belongings that are inside the rental. But this does not include things belonging to the tenants. Rent guarantee prevents you from suffering financially when tenants can’t pay rent. Liability protects you in case you’re liable for someone’s injury and they sue.
Landlord insurance is a security net for a landlord. Anyone who is a landlord should have this coverage. It relieves many of the pressures associated with renting to tenants.