The biggest benefit of landlord insurance is that it protects your rental and any additional structures on the property. It also covers perils just like a homeowner’s policy, covering fire, wind, vandalism, theft, etc., plus one more extremely important issue that can cost you a lot of money.
Liability Coverage – Something Every Landlord Must Have
It also offers liability coverage. Liability covers a possibility that your tenant could be injured on the property due to negligence; should your tenant decide to sue, you would be responsible for any settlement or award, but landlord insurance will cover these costs, plus any legal fees, up to your policy limit.
Homeowner’s insurance only offers protection to owner-occupied properties. Once rented, your policy will no longer provide you with protection. Therefore, landlord insurance is needed.
Renter’s Insurance Does Not Cover The Landlord
Renter’s insurance is not the same as landlord insurance either. Renter’s insurance is offered to the renter and can protect the personal property and liability exposures of the renter.
It can cover loss of rent. If a major catastrophe took place, your tenants would be misplaced while the structure is being rebuilt.
A landlord policy will even cover your loss of income while also rebuilding the structure. Those are 2 huge money issues that you don’t want to have to cover yourself. Many property owners have been financially damaged, sometimes critically, when they do.
Save yourself a lot of grief, stress and a lot of money if something does happen. If you are a Landlord, you need to have the protection of a Landlord Insurance Policy. It’s just makes sense.