In a previous article, we talked about the different features of homeowner’s and tenant’s insurance. Homeowner’s insurance provides coverage for individuals who own their own homes, and tenant’s insurance provides coverage for individuals who rent their homes. But what if you rent homes to other people?
If you rent out a home or apartment that you own, landlord’s insurance is right for you. As with other types of insurances, if you file a claim, landlord’s insurance involves paying a deductible before the insurance company picks up any of the costs for damages. Every policy also has liability limits that cap how much coverage you can receive.
What does landlord’s insurance cover?
Most landlord’s insurance policies provide protection in two areas. First, landlord’s insurance affords you coverage for your personal liability if someone sues you because they had an injury or accident on your property. This can help pay for the medical bills of the injured person along with any other damages the court awards them. You could also be covered for the legal fees associated with your defense.
Secondly, landlord’s insurance helps pay for damages that result from covered losses. This coverage usually extends not just to the physical structure of the home you are renting, but also to detached structures like garages or sheds, and even to equipment you keep onsite to maintain your property, like lawn mowers.
What is typically not covered by landlord’s insurance?
Most standard landlord’s insurance policies do not cover property that you live on. For example, if you rent a room in your home, or even a floor, this is generally excluded. You can always work with your trusted insurance agent to see what your options are if you live on the property you rent.
Generally speaking, most landlord’s insurance policies also do not cover regular maintenance and routine repairs, like an air conditioning unit breaking down. Finally, your tenants’ personal belongings are typically excluded from most landlord’s plans, but your tenants can purchase their own tenant’s insurance policy to cover their personal property.
What additional coverage is available?
Every policy is different, and the types of covered events and optional covered events may even vary by location, however in some circumstances landlords have the choice to add on additional coverage for damages that are not included in their standard plan. These types of damages may include covering the loss of maintenance equipment if it is stolen, repairing damage due to vandalism, and even covering the cost of making required upgrades to your property if the building codes have changed since the property was built.
Knowing what your landlord’s insurance policy covers and what your options are for ensuring the best possible protection will give you peace of mind about the home that you are renting to your tenants. Talk with your trusted insurance agent at Superior Insurance and Auto Tags today about making sure you have coverage in place to protect your rental property.
