Landlord insurance is a policy for someone who rents out a home they own. This type of insurance typically includes two different types of coverage: property and liability protection. Both coverages are intended to help protect you, the landlord, from financial losses. These include coverage for the dwelling, other structures, such as detached garage or fence and the personal property used to service the rental should you have a covered loss. The liability portion of a landlord insurance policy may help you pay for another person’s medical bills or your legal expenses if someone else is injured on your rental property and you’re found responsible.
Landlord Insurance – Frequently Asked Questions
- What is landlord insurance, and how is it different from homeowners insurance?
Landlord insurance is designed for rental properties and covers the structure, liability, and loss of rental income. It does not cover tenant belongings, unlike homeowners insurance, which is meant for owner-occupied homes. - What does a landlord insurance policy typically cover?
It usually includes property coverage for the building, liability protection, and loss of rental income if the property becomes uninhabitable due to a covered event. - Do I need landlord insurance if I only rent out part of my home?
Yes. Even if you’re only renting out a unit or a basement apartment, a landlord policy (or an endorsement to your homeowners policy) is often needed to cover rental-related risks. - Does landlord insurance cover tenant belongings?
No. Tenants are responsible for insuring their personal property with renters insurance. Your landlord policy only covers the structure and your owned contents (like appliances). - What is loss of rental income coverage?
Also called “loss of use” for landlords, this coverage reimburses you for lost rent if the property becomes unlivable due to a covered peril like fire or storm damage. - Am I liable if a tenant or visitor is injured on my property?
Potentially, yes. Landlord liability coverage helps protect you against lawsuits or medical expenses if someone is injured due to a property-related issue. - Do I need separate coverage for vandalism or tenant damage?
Some landlord policies include this, but many require an endorsement for coverage against intentional acts like vandalism or malicious tenant damage. - Can I require tenants to have renters insurance?
Yes, and many landlords do. It protects tenants’ belongings and may reduce liability exposure for you. This requirement can be written into the lease. - Does landlord insurance cover legal fees for eviction?
No. Standard landlord policies do not cover eviction-related legal expenses, though specialized landlord legal protection add-ons or endorsements may be available. - How much does landlord insurance cost?
It varies based on property value, location, condition, and the number of units. It generally costs more than homeowners insurance due to added liability and tenant-related risks.
