It is intended for property owners who are renting one or more properties to tenants.
There are many benefits to landlord house insurance and various options for coverage, so it’s important to review what you need to find the best landlord house insurance for you.
Property Damage: Landlord house insurance covers property damage to your rental home or properties. It provides coverage for any damage caused by fire, storms, other natural weather-related disasters, vandalism or tenant damage. It typically provides payments for the replacement cost of your entire rental property in the event of a total loss.
Loss of Income Insuranc: Most landlord house insurance will include a loss of income component that helps cover the cost of lost income due to the rental property being unlivable. This type of loss of income coverage is only if the unlivable condition of the property is due to property damage from an event listed in the policy, such as a storm or fire.
Liability Insurance: Most landlord house insurance policies will include a liability option, which covers you against claims or lawsuits by your tenants or a visitor. If someone is injured on your property, liability insurance will help cover costs associated with claims or medical expenses. It can also help with legal fees and settlement costs related to the claim. Liability also covers you against a claim of your property damaging a tenant’s belongings.
The Cost of Landlord House Insurance: Landlord house insurance varies in cost, as your premiums and policy depend on a variety of factors. Some factors that may affect your costs are the location of the property, size of the building, number of rentals you are insuring, age and condition of the properties, old electrical wiring, other amenities you offer and any safety measures you have in place.
Check with your home insurance provider to determine if they offer any discounts and check into various companies to find the policy and price that best fits your needs.
Example of Landlord House Property Insurance Claim: Landlord house insurance is designed to protect your property mainly against damages from fires or storms. Most companies will require you to pay a deductible when making a claim.
For example, if a fire damages your rental property, your landlord house insurance will cover the cost to rebuild or repair the damaged area. You would file a claim with your home insurance company and be reimbursed for the losses once you pay your deductible.
Example of Landlord House Insurance Liability Claim: Another major component to landlord house insurance is the liability coverage. For example, if a tenant falls on a broken staircase and breaks their arm, then the tenant could file a claim against your landlord house insurance policy to cover the cost of their medical care.
If that person has extensive damage, they may file a lawsuit against you. In this case, your liability insurance will cover costs for the lawsuit, once your deductible is paid.
Still want more? Click here to see how renters insurance policy works.