If you have ever rented a property – home, apartment, or office space – you are probably familiar with the term landlord. Simply stated, the landlord is the owner who rents the property to other individuals, or tenants. While there are insurance policies to protect homeowners and auto-owners from damages and losses, there are insurance policies designed specifically for landlords.
1. What is it?
Landlord insurance protects the owner from any losses incurred while the property is being rented.
2. Who does it cover?
The policy would cover the landlord and hypothetically, if the property was considered a total loss, would provide full replacement costs.
3. How does it work?
These policies protect the landlord’s investment in the event of various accidental, sudden, or intentional damages.
4. Types of coverage
There are basically two types of coverage for these policies: landlord property protection and landlord liability protection.
Property protection – This includes the structure or dwelling and protects from damages due to vandalism, theft, fire, storms, or damages caused by the tenant. If there are other structures such as sheds, garages, or fences, those would be covered through the policy as well. In addition, the policy would cover damages or losses to equipment used for maintenance purposes.
Liability protection – If someone is injured on the property and the landlord is found negligent or at fault, liability would pay for the individual’s medical expenses and the landlord’s legal costs.
5. Major benefits
The primary benefit is that the landlord does not suffer a monetary loss for damages to the property or a complete loss of property. Other aspects include loss of rental income and damages caused by the tenant.
Loss of rental income – If the tenants vacate the premises without notice or default on rental payments, the landlord is covered.
Malicious damages – Whether the damages were accidental or deliberate and malicious, the landlord can repair and replace stolen property.