Everything You Need to Know About Landlords Insurance Policies

Everything You Need to Know About Landlords Insurance Policies

There’s no shortage of risks to think about when you own rental property, from storm damage to water damage to theft to damage caused by renters themselves and many more.

That’s why the majority of landlords take out insurance policies, but that doesn’t mean that they understand everything their policies cover or don’t cover.

Liability Coverage

You may be wondering what liability coverage is, and whether it’s necessary for landlords.

The short answer is that yes, liability coverage is necessary if you’re a landlord. It will cover the cost of repairs and replacements in the event of damage or injury on your property.

One of the most popular kinds of coverage offered by insurance companies is called named peril which will cover you in case someone gets hurt or their property gets damaged while they are on your property.

For example, say there is an accidental fire at one of your properties and the building burns down.

Under this policy, you would not have to pay for any damages or injuries as long as there was no malicious intent involved.

If you want to know more about this kind of coverage, talk with an agent from your insurance company because these policies can vary from state-to-state and provider-to-provider.

It is important to make sure you get the right policy because it could save you a lot of money in the long run.

A few other things you should look out for are: how much does the landlord insurance cover?

What types of perils does the policy include?Who has to file a claim? Do I need additional riders like flood or earthquake coverage? Does my building qualify for discounts?

Property Coverage

Landlords insurance policies can be confusing, but it’s a good idea for any landlord.

These policies will cover the property you’re renting out and your liability if someone gets hurt on the property.

They’ll also cover damages caused by fire or storm, which is especially important if you live in an area that’s prone to natural disasters.

It’s also worth noting that some landlords insurance policies will only provide coverage when the building is vacant.

So, if you want to offer protection while people are living there, then be sure to get renter’s insurance too.

Don’t forget about homeowner’s insurance: if you own the home that your tenants rent from you need this additional policy as well! Most homeowners’ insurance covers damage to both the structure of your house and its contents.

But be aware that not all plans come with replacement cost value—they might just pay the market value of what was lost.

And remember, homeowner’s insurance doesn’t typically cover any business activities like running a daycare or hosting parties at your home.

Rental Income Coverage

The cost of a landlord insurance policy is based on the amount of income received from tenants.

The higher your rental income, the more expensive your landlord insurance will be.

There are some policies that have a limit on how much coverage you can receive for certain types of damages, so you’ll want to make sure that this is something you’re aware of before signing up for a specific plan.

Some may not cover losses in which another person was found liable or if there was criminal activity involved in the loss.
Landlord’s Policy Types: Your landlord insurance policy should include property protection as well as liability coverage.

There are also additional optional coverages such as earthquake and flood insurance available with many landlords insurance providers.

You may also need separate coverage if you provide parking spaces or storage units at your rental property.

If you do any renovations or improvements to the property, talk to your insurance provider about adding an additions rider.

These riders usually come with an extra premium because they typically increase the amount of protection provided by your landlord insurance policy.

Additional Living Expenses Coverage

This coverage pays for the additional living expenses that you incur when your rental property is unusable.

For example, if there is a fire in your rental property and the building has to be demolished, the insurance company may cover the cost of renting an apartment for you and your family until a new home can be found.

If you’re using rent-to-own financing and are suddenly unable to live in the house because of something covered by Additional Living Expenses Coverage, it may pay off the remainder of what you owe on the house and any other money you borrowed against it.

How much does landlords insurance policies cost? Your landlord’s policy will likely have limits on how much it will pay out before requiring you to file a claim yourself, so make sure this is something you consider when making decisions about whether or not to purchase landlords insurance.

The costs of homeowners insurance vary from state to state, but typically range from $200-$300 per year for a one-unit residential property.

Renters insurance may cost anywhere from $10-$40 per month depending on your deductible and premium amount; the average renter spends around $20 per month.


Landlords insurance policies are specific and different from a home owner’s policies, which can leave many tenants feeling left in the dark.

However, there are some discounts that landlords can take advantage of when they have renters living on the property.

The most common landlord’s insurance discount is called an Act of God. With this type of policy, if your building gets damaged because of natural disasters like a storm or earthquake, you won’t have to pay for repairs or rebuilding costs up to the limit you’ve chosen.

If something bad happens to your rental property, it will be insured by the company until you can start using it again.

Other popular types of discounts include:
A  potential tenant questions with corresponding answers follows: Though tenants might not see the connection between their safety and their landlord’s insurance policy, sometimes crimes happen at rentals.

It’s important to know what coverage you have in these cases so that you can protect yourself financially.

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