Landlord Insurance Policies
Protection You Need
Landlord insurance or rental property insurance protects landlords against certain types of property damage, including fires, lightening and specific natural disasters. The policies typically cover the main building and any attached structures, including decks and overhangs, and one or more outbuildings, including sheds and garages. It also covers any personal property of the landlord’s including furniture and lawn care tools that are located within the rental property. Landlord policies do not cover personal property belonging to tenants.
Eligible Rental Properties
Landlords can insure properties that they own and are renting or intend to rent. Covered main buildings typically include vacation rental properties, single family homes, duplexes and row homes. Older homes and homes needing minor renovations can also be covered under a landlord policy.
Landlord Insurance Policy Options
Landlords can choose various types of policies, including comprehensive, named peril and liability policy options. Comprehensive rental property insurance replaces or repairs your property if it is damaged accidentally or suddenly by fire, theft, vandalism or certain not excluded natural disasters.
Named peril coverage covers damage and properly loss from specifically listed accidents and severe weather occurrences.
Liability coverage protects the landlord if an individual gets hurt on the property, and the landlord is found to be responsible for the accident.
Rental Insurance Settlement Options
There are several settlement options available to landlords, depending on the degree of loss. Payout options include total loss and partial loss. A total loss payout occurs when the property is completely destroyed. The landlord receives a payout in the amount of the policy excluding any deductibles.
A partial loss payout occurs when the covered accident or disaster does not completely destroy the property. In this instance, the landlord receives a payout in the amount of the estimated repairs minus any deductibles and depreciation. In addition to the basic insurance policy, landlords can opt to purchase replacement cost insurance, which helps replace the destroyed property with a similar property.