What Is a Landlord Insurance Policy and What Does It Cover?

If you own a home that you rent to someone else, your regular homeowners insurance may not provide the protection you need.

That’s where landlord insurance comes in.

A landlord policy is designed specifically for residential properties you own but don’t personally occupy. Whether you’re renting out a single-family home, duplex or another residential property, landlord insurance can help protect the building, your financial investment and your liability as the property owner.

So, what exactly does a landlord policy cover — and when do you need one?

What Is a Landlord Policy?

A landlord insurance policy, sometimes referred to as a dwelling fire or rental property policy, is insurance designed for property owners who rent a home or dwelling to tenants.

While homeowners insurance is generally designed for a home you live in, landlord insurance accounts for the different risks that come with having tenants occupy the property.

For example, if a fire seriously damages your rental property, you could be facing more than the cost of repairing the building. You could also lose months of rental income while repairs are being completed.

A properly structured landlord policy can help protect against these types of financial losses, depending on the coverage you select.

What Does Landlord Insurance Cover?

Coverage varies by insurance company and policy, but a landlord policy will typically include several important types of protection.

The rental property itself: Landlord insurance can help pay to repair or rebuild the home following a covered loss, such as a fire, windstorm or certain other types of damage.

Other structures: Depending on your policy, detached structures on the property, such as a garage, shed or fence, may also be covered.

Landlord-owned property: If you provide appliances, furniture or other items for your tenants to use, your policy may provide coverage for certain property you own at the rental.

Liability protection: If someone is injured on your rental property and you’re held legally responsible, landlord liability coverage can help protect you from potentially significant expenses, including legal costs and covered damages.

Loss of rental income: If a covered loss makes your rental property temporarily uninhabitable, certain landlord policies can help replace the rental income you lose while repairs are being made.

Exactly what’s covered — and how much — depends on your individual policy.

Does Landlord Insurance Cover Your Tenant’s Belongings?

This is an important distinction:

Your landlord policy generally doesn’t insure your tenant’s personal belongings.

If a fire damages the building and destroys your tenant’s furniture, clothing, electronics and other possessions, your landlord policy is designed to protect your property — not theirs.

That’s one reason landlords may want to require tenants to carry renters insurance.

Renters insurance can help protect the tenant’s belongings and typically provides personal liability coverage for the tenant as well.

---

What Doesn’t a Landlord Policy Cover?

Landlord insurance doesn’t cover everything that can happen to a rental property.

For example, standard policies generally don’t cover routine maintenance or normal wear and tear. Flooding and certain other causes of damage may also require separate coverage.

There can also be important differences between policies when it comes to water damage, vandalism, extended vacancies and other situations.

That’s why choosing landlord insurance based solely on price can be risky. Two policies that appear similar at first glance may provide very different protection when you actually have a claim.

Do I Need Landlord Insurance If I Only Rent Out One House?

If you own a property that you regularly rent to someone else, you should talk with your insurance agent about a landlord policy — even if you only own one rental property.

A common mistake is assuming a standard homeowners policy will continue to provide the same coverage after turning a home into a rental.

Insurance companies need to know how a property is being used. If you’ve moved out of your former home and decided to rent it instead of selling it, don’t simply leave your homeowners insurance unchanged.

Let your insurance agent know about the change so you can make sure the property is insured appropriately.

What About Short-Term Rentals?

Renting your property through a short-term rental platform can create different insurance considerations than having a traditional long-term tenant.

If you’re renting your home, second home or investment property for short stays, don’t assume a traditional homeowners or landlord policy automatically provides everything you need.

Tell your insurance agent exactly how the property is being rented and how frequently so they can help determine the appropriate coverage.

Protect More Than Just the Building

For many landlords, a rental property represents a significant investment and an important source of income.

That’s why landlord insurance isn’t just about rebuilding a house after a fire. It’s about protecting the larger financial investment you’ve made in the property.

At Blue Marsh, we can help you evaluate your rental property, liability exposure and coverage needs and compare options from multiple insurance companies.

Whether you own your first rental home or several investment properties, we’ll help you make sure your insurance is designed for the way you’re actually using your property.

Own a rental property? Contact Blue Marsh today to review your landlord insurance and make sure your investment is properly protected.

A little more about Blue Marsh Insurance…

When he founded Blue Marsh, Tom Davenport wanted to create a different kind of insurance company. One that’s built on personal relationships and a local presence. One where you, the customer, feel more like a friend.

As an independent insurance agency, Blue Marsh Insurance represents a carefully selected group of financially strong, reputable insurance companies. Therefore, we are able to offer you the best coverage at the most competitive price.

If you’re interested in starting a quote online or having us take a look at your current policies, click here!