If you own property and rent it to tenants, you need landlord insurance. If doesn't matter if your tenants are friends or relatives, you still need landlord insurance to protect you from financial losses if .
Landlord insurance is a policy to cover the home you are going to be renting to another person. This type of insurance includes both property and liability protection. Both coverages are intended to help protect you from financial losses as the landlord. The following coverages would be covered in your Landlord policy:
- Dwelling
- Other Structures
- Personal Property
- Fair Rental Value
- Premises Liability
- Medical Payments
Is there a difference between Homeowner's policy vs Landlord Policy?
It’s a good question. Generally speaking, Landlord Insurance covers the protection of your rental properties, specifically the “dwelling” (the structure of the property) as opposed to your possessions, which are covered by Homeowners Insurance.
Landlord insurance policies include at least three core protections: property damage, liability and lost rental income. For one thing, reimbursement for lost rental income isn’t covered by other types of policies. Another thing to remember is that landlord insurance does not cover a tenant’s personal belongings. It’s up to the tenant to buy renters insurance if they want to be reimbursed for damage to their stuff.
Depending on the location and condition of the rental property you own, you might consider additional coverage that can cover things like construction costs, commercial property, flood insurance, earthquake insurance, water backups and vandalism.
For example, if your rental property is in a high-crime neighborhood, you might consider adding vandalism protection to your policy.1
1 Information was disclosed on Ramsey Solutions website. https://www.ramseysolutions.com/insurance/types-of-property-insurance#landlord-insurance
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