Landlord Insurance

Information on Landlord Insurance


This kind of coverage is designed to protect a residential property from any damage that may occur as a result of natural events or due to the actions of a tenant or his or her visitors. The usual policy will cover all major structural components of a property such as the foundation, HV/AC, electrical and plumbing, doors, windows, roofs among other things. Also, any exterior structures, such as sheds, garages, fences, gates or walkways can also come under the protection of this type of insurance plan.

Who Benefits?

Landlord insurance is specifically engineered for people who own residential properties and who also rent these properties out to tenants. This insurance coverage is intended to only protect the landlord’s interests. These rental properties can include apartments, condos, townhomes, or single-family homes, and more. All can be protected by good landlord insurance.

How does it function?

Landlord insurance is similar to other insurance types in that the policyholder pays a monthly premium and also is responsible for any deductible prior to the coverage compensation kicks in. All this has a hand in coming up with the total annual policy costs for the landlord. A claim may be filed to receive compensation so as to fully repair any structural damage and to replace damaged items like appliances and plumbing or electrical and detached structures such as garages or sheds. The landlord’s valuable personal items that are also used by tenants are also protected.
Landlord insurance is available to help in providing financial protection against such events as a fire that is accidentally set or even one that is due to arson. This coverage can be put into effect to rebuild a property that has, for instance, completely burned down or to simply repair damaged components of the structure.

Big Benefits

The most a policyholder can receive in benefits is directly related to the market value of his or her covered property at the time of its destruction or damage. This kind of coverage can also pay out for property damage as a result of weather-related events like severe thunderstorms, tornadoes, hurricanes and snowstorms. With this policy protection, vandalism and other purposeful acts of destruction can also be covered under a proper landlord insurance plan.
A big plus in obtaining good insurance for landlords is the priceless peace of mind that comes in the knowing, for instance, that you can receive compensation for lost income if you need to evict a tenant and the space is vacant for a certain length of time. Renters can sometimes be moved out of a property that becomes uninhabitable as a result of disasters and accidents, here a landlord may file a claim and receive compensation that is equal to the sum that would have been collected from tenants had the destructive event never occurred. Should a tenant damage a rental home or apartment, this coverage can pay out to the owner for repair expenses, thus avoiding out-of-pocket expenditure.