Owning rental property is a great way to make some extra money, but it also puts you in need of insurance. Landlord insurance can help ensure that your property is protected. Learn more about landlord policies.
What it is
Landlord insurance is a type of insurance the offers protection to property owners who rent their properties to others. If you own property that gets destroyed or damaged by a fire or other covered peril, your landlord policy will pay to have it replaced or repaired.
Who it’s for
Landlord policies are for anyone who owns property and rents it out to others. This can be a business or an individual. If you own a house, for instance, and rent it out, you need an insurance policy for landlords.
How it works
Landlord policies offer you coverage on the property that you rent out to others. It generally covers just the property and not the contents inside. In most cases, the renter has his or her own insurance to coverage the household belongings. You can purchase insurance to cover the renter’s property if you wish to do so.
You pay a premium to the insurance company in exchange for the insurance. The premium cost is based on the value of the property and the amount of coverage. You will need to pay a deductible each time you make a claim.
Types of coverage
Landlord policies generally offer the following types of coverage.
• Property damage – This covers the property if it is damaged or destroyed by covered perils like storms, hail, fire, etc.
• Liability insurance – This covers you if you are sued when someone is injured on your property. It also pays for their medical bills.
• Loss of income – This pays you the amount you are losing in rent while the property is being repaired or replaced.
The main benefit to a landlord policy is that it will protect you against loss. Without a landlord policy in place, you would be out the cost of the property and would no longer have the earnings from the rental. It also offers you liability insurance so you don’t have the worry of being sued.