LANDLORD Insurance Policy

Though most landlord insurance policies are not as comprehensive as homeowner’s policies, they still cover the important basics: the rental property against fire, lightning, snow, sleet, explosion and other covered perils; the garage, shed and other enclosures on the grounds; and the stove, refrigerator, microwave, washer and dryer and other items that the landlord supplies for the tenants.

Policies for landlords also cover the supplies and tools that the landlord or the maintenance staff leaves on the premises. These policies also cover the policyholder’s losses from vandalism and malicious mischief.

Landlord policies offer limited liability in the event a tenant or someone visiting a tenant gets hurt on the property. A common amount for liability coverage is $300,000. Landlord policies will pay landlords for lost income if a covered event means that the landlord will temporarily lose rental income.

People who rent out their property for a week or a couple of months may be able to get coverage through their homeowner’s policy. On the other hand, some insurers require that the policyholder buy an endorsement to their existing homeowner’s policy to get this coverage. Still others require that the owner of the rental property buy renters insurance.

People who intend to rent their property out for an extended period of time—six months, a year or more—will probably have to buy a landlord or rental dwelling policy. If renting out a vacation home or a property that brings in regular monthly rental income, the property owner certainly will have to purchase a landlord or rental dwelling policy. Landlord insurance policies costs more than homeowner’s policies because landlords are subject to more risks.

The Internet brings more opportunities for taking in renters. There is at least one website where people can post dwellings for rent for potential guests to claim. However, people venturing out into this type of rental arrangement would be wise to secure appropriate coverage before letting renters occupy the property.