What Does A Landlord Insurance Policy Cover?

Thought you might be interested in an article about landlord insurance coverage and thought I’d share a few points with you here. I’ve included a few snippets below lifted from the full article.

"A basic landlord insurance policy offers dwelling coverage for structural damage to the property and fair rental income protection for cases where the tenants have to move out unexpectedly due to a covered loss and you're unable to collect rent during the time that the property is being repaired. A comprehensive policy would include additional protections such as:

• Acts of Nature – hurricanes, earthquakes, lightning strikes, etc.
• Water/Flood Damage – usually a separate policy but can be included in the package
• Personal Property – important if you're renting out a furnished house or apartment, but it also covers window treatments, appliances, carpets, and more
• Legal/Liability/Medical – protects you in the event that you get sued by a tenant or even a contractor working on the property

If you have multiple rental properties or a large property such as an apartment complex, then you may wish to consider investing in an Umbrella or Excess Liability Policy to cover your personal assets in case a liability claim exceeds the coverage limit of your DP-1, DP-2, or DP-3.

Does Landlord Insurance Cover Tenant Damage?

If your tenants vandalize or damage your rental property in any way, your insurance policy will cover those situations. Requiring a security deposit and/or a cleaning deposit upfront can also help mitigate financial hardships arising from the tenant's actions, especially if the monetary extent of the damage is greater than the coverage limit. You might also want to include a clause in the rental agreement where the tenant will forfeit the return of his or her security deposit under certain conditions."

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