The Importance of a Landlord Insurance Policy
A landlord insurance policy covers damage to rental property in case of fire, storm, vandalism, theft or other damage. The policy does not cover the tenants personal belongings either inside or outside of the property.
When is Landlord Insurance Necessary?
Anyone who rents property to others should have landlord insurance coverage. They could rent a condo, home or apartment – they all require landlord insurance. A person who lives in their home, but rents it out for one or two weeks out of the year generally will not need this type of policy. For occasional and short-term rentals, a typical homeowners insurance policy is enough.
The Basics of the Policy
Landlord insurance covers a variety of incidents. It is important to read the policy, and understand what it includes. The policy may pay a tenant if they are hurt on the property because of the landlords negligence. For example, if the tenant falls and breaks their arm because of a loose stair the landlord refused to repair, then the tenant can expect the landlord to pay their medical bills. The policy also pays if a tenant damages the property or a natural disaster occurs.
Other options are available for landlord insurance. Make sure to ask about all options.