Landlord insurances are types of insurance policies that protect a landlord from property damage and other risks related to renting your property to tenants. Similar to a homeowner’s insurance policy, rental property owners can select several different types of insurance coverage. Some state and local government agencies may require several types of insurance policies for your property.
Although there are many insurance policies to choose from, the main policies are referred to as dwelling policies. These policies can provide minimal insurance required to rent property to tenants and some policies provide extensive coverage, such as covering costs for acts of nature including wind storms, hurricanes or other perils. Landlord policies with extensive coverage also provide replacing damaged property with new, improved equipment and construction, rather than simply estimating a cash value minus the depreciation of the damaged property.
Other types of insurance policies include liability insurance, flood insurance and workers compensation insurance. Liability insurance covers being sued for damages, such as a tenant who slips on a wet floor or sidewalk and wants reimbursement for medical expenses and other misfortunes the tenant may have ensued. Flood insurance is required for a landlord’s property if it is in a designated flood area. Workers compensation insurance is needed for landlords who hire employees or contractors.
This form of coverage can protect you in the event that your tenants are negligent, a natural disaster occurs and more. Let’s face it. Accidents happen. Make sure you are covered when they do.