Landlord insurance is simply house insurance for your rental property. Suppose an incident occurs, causing some damage to your property, such as theft, fire, or vandalism. This insurance will cover the property owner for any repair or replacement costs they might encounter while fixing the issue.
The protection from landlord insurance is quite extensive. These include loss of rental income, the damage is done to the building, and liability coverage if someone injures themselves in your rental.
Although having landlord insurance isn’t necessary, it’s certainly recommended. Having coverage from the above situations can provide you with peace of mind knowing your building, and also, you are protected from any financial burdens that may occur.
What’s Included in Landlord Insurance?
Within landlord insurance, you’ll gain coverage on your building. If your building is vandalized, damaged by natural events such as hail, lightning, or a storm, you’ll be covered by any breakages caused on your property by these events.
It’ll also cover theft of any items that you’ve installed in your rental. For example, if you rent out an entire furnished apartment to a tenant, they’ll also be renting the furniture from you, and therefore, you’ll be covered if any of these are stolen (if stated in the policy). However, this will not cover anything that the tenant owns. They’ll have to purchase tenant insurance which offers content coverage.
If you’re liable for an injury that has happened on your property, the tenant can sue you. With liability coverage, you’re protected from these legal situations.
Rental Default Insurance
In the unfortunate event that your property becomes uninhabitable due to severe problems, including mold, infestations, and fire damages. If you’re not responsible for these issues and they’re not excluded from your policy, you’ll receive compensation from the income you’d be losing from tenants not living there. This pay-out will last until the old or new tenants move in.
Remember, before diving into purchasing a landlord insurance policy. Make sure you’re aware of your policy covers, the exclusions and how much you’re able to compensate for. All policies are slightly different from one another, and so are the requirements needed from different landlords. For instance, if you’re renting out a fully furnished property, you may need extensive cover as standard landlord insurance may not protect this.
What Might Not Be Covered by Landlord Insurance?
I’ve mentioned exclusions throughout this article, but what situations can you not claim for?
- Plumbing pipes freezing
- Overall general wear and tear a property encounters
- Pest control
Although exclusions depend on your insurance provider and your location, above are the main types of situations in which landlord insurance doesn’t cover. It’s essential to be aware of these and the exclusions you might encounter if you break specific policies mentioned in your insurance.