What does landlord insurance cover?
Landlord insurance protects the home or structure you rent and provides liability coverage. Liability coverage pays for lawsuits against you or things that are your fault. For example, liability protects you if your tenant sues you because they had a slip and fall accident on the stairs because the handrail was broken. Like homeowners insurance, landlord insurance will protect your property against fire, lightning, wind, hail, etc. It will also cover you when dealing with tenants.
- Home or structure you’re renting (includes kitchen cabinets, flooring, vanities, anything else permanently installed in the home)
- Other structures (includes sheds, barns, or other structures on your property)
- Theft (renters insurance covers theft of your tenant's possessions)
- Loss of rent
- Liability (if you’re sued by a tenant or responsible for other damages)
If you need landlord insurance, call an expert insurance rep at 1-866-749-7436.
What impacts the landlord insurance cost?
As with home insurance, the cost to rebuild the property largely determines how much you’ll pay for landlord insurance. Size, age, and construction type will all impact the cost to rebuild. The more it costs to rebuild the home/structure, the higher the price.
Deductibles can impact your price as well. You might prefer a low deductible in exchange for a higher rate. Or you may want to lower the cost of landlord insurance by increasing your deductible. Here are some other factors that may affect the price:
Personal property: If you didn’t furnish the home, then you may save money. The tenant is then responsible for insuring any furniture or personal property they bring with them. If the home already contains landlord-owned furniture and appliances, then you’ll pay more to cover those items.
Liability: It’s up to you to decide how much liability coverage is necessary. The greater the amount, the higher the price.
Location: If the property is in a high-risk area, it will cost more to insure.
Alarm or security system: Burglar alarms may help prevent a robbery and potentially lower your cost of insurance.
Landlord Insurance FAQs
Do I need landlord insurance?
Landlord insurance is not required by law, but most lenders will require it if you're financing the property or have a mortgage on it. Remember, your homeowners insurance policy likely will not cover the home you’re renting out. That means any damage to the home, the belongings inside you own, or lawsuits against you will not be covered unless you get landlord insurance.
Does landlord insurance cover loss of rental income?
Most insurers will protect the landlord against loss of rent in the event of a covered loss. For example: A tree crashes through the roof, your tenants can’t stay there, and don’t pay rent. But, you won’t have coverage if your tenant can’t pay the rent because of a job loss or financial problem.
Does landlord insurance cover tenant damage?
Typically, yes. To avoid these types of situations, landlords generally require a security deposit to pay for damages by a tenant.
Does landlord insurance cover the cost of evicting a tenant?
Insurers usually don’t cover eviction costs. But, eviction insurance can be purchased separately from other companies.
Does landlord insurance cover the tenant’s stuff?
No. It’s a common misconception that a tenant’s personal belongings will be covered by the landlord’s insurance. The tenant needs a renters insurance policy to protect whatever stuff they bring with them. That’s why some landlords mandate or strongly encourage their tenants to get renters insurance. The last thing you want is your tenant mad at you because they didn’t know their stuff wasn’t protected under your policy.
Your tenants need renters insurance to protect the stuff they bring with them.