What Is Landlord Insurance?
Landlord insurance provides coverage for property owners renting out one or more residential homes, apartments, or condos. As a landlord, you need protection from financial loss that may result from damages to a rental property due to fire, break-in, severe weather and more. You can get insurance to help cover loss of income in the event that your rental units become uninhabitable due to circumstances beyond your control.
What Does Landlord Insurance Cover?
Landlord insurance provides several important types of coverage. Depending on the insurance company you work with and the options you choose, your policy may consist of some or all of these types of insurance:
This covers damage to your buildings and personal property due to fire, storm damage, theft, vandalism (additional fee) and tenant damage. Ideally, your landlord insurance will cover the replacement costs for your entire rental property in the event of a total loss.
This coverage protects you against liability claims and lawsuits. Whether a tenant, visitor or even a trespasser is injured on your rental property, you could find yourself in a legal mess. Your liability insurance will help you cover the costs associated with bodily injury claims on your property. These costs can include medical payments, funeral costs, legal fees and judgment or settlement costs. You will also be covered if you, as the landlord, are found responsible for another person’s property damage. For example, if you neglect to fix a leaking water pipe and mold damage destroys a tenant’s expensive collection of vintage albums, a liability claim can be filed against you by the tenant.
Loss of income
This insurance will help compensate you for lost income in the event that a rental property becomes uninhabitable due to a covered loss, such as a storm or apartment fire. Your loss of income coverage, or “rental reimbursement,” will prevent you from losing the income you would have had if you were collecting rent. Additional fees may apply.
As a landlord, you can buy additional coverage, such as rent guarantee insurance, natural disaster insurance, employer liability insurance and landlord contents insurance to cover your personal property items such as furnishings or carpet in the rental property.
Is Landlord Insurance Mandatory?
Yes, Nestwell Property Management and your mortgage company require that you have adequate property insurance. You will need to add CDA Properties, Inc as an "additional insured".
How Much Does Landlord Insurance Cost?
Depends. How many properties are you insuring? What’s the property value? How much liability insurance do you want to tack on? These, and other factors, will determine the price, but expect to pay 15%-20% more for landlord insurance than you do for homeowners.
For additional questions or more info, please don't hesitate to schedule a call or email us.