Landlord insurance is a dwelling policy designed for property owners who have a secondary residence used by others. Although landlords who rent their property to tenants use this type of policy most often, this isn’t the only possible use. Individuals who own a second house, which is occupied by a family member, may also carry this coverage.
Unlike insurance policies for homeowners, landlord insurance typically offers little or no coverage for personal property. Because of this, a landlord who leases a fully furnished home to tenants may need to add personal property coverage or purchase a homeowner’s insurance policy with increased liability coverage.
In order to provide the necessary coverage for the many unique circumstances landlords face, these policies offer certain beneficial features not found on other dwelling policies such as:
• Rental Income- If a claim is filed that leaves the property uninhabitable while undergoing repairs, this coverage will reimburse the landlord for lost income. There may be limits to how much a given policy will pay, so it’s important to discuss your needs in relation to coverage availability with an agent.
• Vandalism- Typically offered as an additional optional coverage, this feature would cover the cost to replace or repair property that was vandalized.
• Burglary- In addition to covering the repair costs for damaged fixtures after a break-in, this coverage also helps pay to replace stolen items.
• Property Under Construction- Many landlords worry about damage that could occur to their property while it is under construction or in the process of being renovated. Purchasing this coverage can ensure reimbursement for losses that occur during those periods.
• Building Code- Sometimes during the course of renovation or repairs, it is necessary to update electrical, HVAC, or other systems in order to remain compliant with local building codes. This coverage helps offset the increased costs of adhering to all necessary regulations or ordinances.
It is important to note that a landlord policy covers the house itself, attached fixtures, and some of the landlord’s property, such as appliances. This type of policy does not offer any coverage to the tenants’ personal property.