Landlord insurance is a form of homeowners insurance designed for property owners who rent out all or part of their property to others.
Landlord insurance coverage is similar to a standard homeowners policy, but the relative amounts of coverage may differ.
For example, as a landlord, you probably only need a very small amount of personal property coverage because you are not responsible for insuring the belongings of your tenants. You should encourage your tenants to obtain a separate renters insurance policy.
Landlord Insurance Coverage Policy
The categories of coverage provided by a typical landlord insurance policy are described below:
This is coverage for the physical structure of the dwelling.
Coverage for Other Structures
This provides coverage for structures on your lot that are not attached to the dwelling, such as garages and sheds. Coverage for detached structures is normally limited to 10 percent of the insurance value of the dwelling.
Personal Property Coverage
This is coverage for personal property owned by the landlord and made available for the use of the tenants, or stored on the property, such as appliances, furniture, tools, and gardening implements.
Liability coverage provides protection against bodily injury and property lawsuits arising from a covered loss.
Coverage for Loss of Rental Income
This provides compensation for lost rental income if you are unable to rent out your property as a result of damage caused by a covered event.
Your policy may provide coverage for additional expenses, such as damage to trees and shrubs (generally excluding damage caused by wind and ice), debris removal, fire department charges, and loss assessment.
Like other homeowners policies, a landlord insurance policy may exclude some items or perils from coverage. For example, earth movement, intentional loss, neglect, nuclear hazard, power failure, and war.
Hope you like this article about Landlord Insurance. You can check our other informative articles about different types of insurance in this blog.
Townhome insurance is similar to condo insurance, but there are some important differences:
1) In most states, condominium associations are governed by specific laws and insurance requirements. In contrast, townhome associations and homeowners associations may not be subject to the same requirements.
2) If you own a townhome, the type of policy you need depends on whether or not your association has a master policy covering the building structure and other common areas.
With a master policy in place, you only need coverage for those items that are not already protected by that policy, such as your furniture, carpets, cabinets, personal possessions, and items on your lot.
You should determine what coverage has been obtained by your townhouse association and what additional protection you might need.
3) If your association does not have a master policy, you will need to obtain homeowners insurance as if you live in a single family home—i.e., you need coverage for the building structure and exterior as well as interior furnishings and your personal belongings.
4) Unlike condo owners, you are also responsible for insuring your lot. This could include trees, shrubs and outdoor structures such as a garden shed.
Read what is landlord insurance in detail.