Everything You Need To Know About Landlord Insurance

weed ross group landlord insurance blog

You’ve done it. You’ve become a lord of the land. So as you know, being a landlord is no simple task—you’re responsible for a surprising number of things, and the list never seems to come to an end. But on top of your daily to-do’s, you have to make sure you’re protected against potential losses and liabilities that may come from owning a property that someone else is living in. All sorts of things can happen, and because they’re mostly outside of your control, it’s absolutely critical that you’re prepared.

Landlords know real estate, and they may even be familiar with marketing and finance. But many landlords aren’t very well-versed in insurance, especially something as niche as landlord insurance. The majority of people struggle to identify the difference between landlord insurance and homeowners insurance in general, for instance. But not to fret, Weed Ross is here to clear the air. Below, we examine all of the ins and outs of landlord insurance so provide you with all of the insight and knowledge necessary for a successful and well-protected lease.

In this article we will cover how to:

What is landlord insurance?

Landlord insurance is a type of insurance package with coverages specifically designed for someone who rents out a property that they own. Mainly composed of property and liability protection, landlord insurance ensures that the owner of the property is protected from damage, losses and incidents associated with their tenant. It’s really that simple.

When is landlord insurance necessary?

If you own a lake house or a vacation home and you rent it out in the off season, landlord insurance is crucial. Basically, any time you have an official tenant, landlord insurance is a must-have. But if you’re just letting a friend house-sit while you’re gone for an extended vacation, you’re not actually landlord-ing. If that’s not a verb, we’re going to make it one. Landlord insurance is an essential package for anyone renting out homes that they own, whether it’s your full-time job or just a side gig. You’d be surprised by the number of things that aren’t actually standard coverages in your home insurance policy that will almost certainly come up in a rental situation.

What is the difference between landlord insurance and homeowners insurance?

While many people get them confused, and there is some overlap, landlord insurance and homeowners insurance differ in a few notable ways. For instance, landlord insurance and homeowners insurance will both cover the building or dwelling itself, as well as other major structure on the property, such as garages, sheds, and the like. However, when it comes to personal property, landlord insurance really only covers items and equipment that are required to service the rental property. Think lawnmowers or other things used for home maintenance. This is also why enforcing a renters insurance policy is always a good idea, so that the tenants’ personal property is covered in some way.

What does landlord insurance cover?

Landlord insurance covers a variety of important scenarios, but namely, the key coverages typically included in a landlord insurance policy are protection from property damage, liability protection, and rental income loss. Landlord insurance coverage applies to your dwelling, any other structures on the property, and some personal belongings. So if your garage burns down on your rental property, you’ll be covered. If your tenant accidentally puts a dent in the drywall, landlord insurance can certainly help. And though the tenants’ rental insurance may cover a lot of these types of incidents, you’ll want to be protected as the property owner as well. Also, when it comes to injury and liability, most incidents will be the tenants’ responsibility, but in case you’re somehow found at fault for these occurrences, landlord insurance has your back. 

To summarize and reiterate, landlord insurance covers:

  • Dwelling
  • Other Structures
  • Personal Property
  • Liability

What are some extra landlord-relevant coverages to consider?

Sometimes, thinking outside the box has its rewards. Depending on the type of property you’re renting out, or your specific situation, you may want to consider some extraneous coverages to add to your landlord insurance policy. For example, it may be worthwhile to look at vandalism and burglary coverage. If you’re renting a property out in an area with higher-than-average crime rates, these types of policy additions will protect you from financial losses incurred from vandalism and robbery. Additionally, “rental property under construction” coverage is a great option to protect your rental property while you make upgrades in between tenants or before it’s officially ready for occupancy. Talk with your local insurance agent to better determine how to optimize your landlord insurance policy coverages. 

Weed Ross is a local insurance agency that remains committed to providing the absolute best insurance packages that the industry has to offer. We work with numerous carriers, so you don’t have to sort it out on your own. Our experience spans a range of different insurance types, from business insurance, to brewery insurance, to renters insurance, and even landlord insurance. Yeah, we got it all, and we’re here to make things easier. However, if you still have questions regarding landlord insurance, give us a call today!

Related Information:

Home Insurance
Second Home and Vacation Home Insurance
Renters Insurance
Does My Home Insurance Cover Airbnb?

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