Landlords who opt for a comprehensive insurance policy are afforded coverage for apartment buildings, rental homes and the like. This kind of policy generally covers the property, any structures on the property, like a shed or a garage, and all items that lie within the rental units that are owned by the landlord. A landlord insurance policy is essential for any owner of rental properties. Some states have localities in which it is mandated that landlords have this kind of insurance.
Should a renter or any third party be injured on the property, this coverage gives landlords liability protection should a lawsuit come into play. It is important to purchase landlord property insurance so as to not be excluded from protection over claims that are not under the standard coverage purview.
There are a few options available for people who are in the market for landlord insurance. The most popular is liability insurance. It is the coverage that provides protection against potential lawsuits originating from a tenant due to an accident or some other issue. Many policies have Fair Rental Value coverage, which provides the holder of the policy with a replacement for lost monthly rent due to the property becoming no longer inhabitable. Inflation protection is included with some policies, which takes into account inflation costs when determining a coverage amount. In this case the insurance company would increase the coverage amount incrementally on an annual basis.
Landlord insurance is a no-brainer for anyone who derives income from rental property. Be it a fire or a flood, a tornado or a hurricane, damage is covered by this kind of insurance. Additionally, repairs to the property and even lost rent can be covered. Landlords who purchase multi-property policies receive coverage for all their buildings. In order to make it all easier to handle and more efficient, it is recommended that one, combined policy for all property owned be considered. Talk to your local insurance professional for more information.
Landlord insurance is specifically for the landlord and not the tenants. They need to purchase their own insurance for their personal possessions within their rental unit.