What Does Landlord Insurance Cover?

December 8, 2022

If you’re a landlord, you might be wondering if you need to get landlord building insurance, or rental property insurance as it’s sometimes called. The answer is yes! Landlord insurance is an important way to protect your investment and safeguard your rental income.

In the points below, we’ll cover everything you need to know about landlord insurance – what it is, what it covers, and why it’s so important.


What is landlord building insurance?

Landlord insurance is a type of property insurance that protects landlords from financial loss in the event that their rental property is damaged or destroyed. It also covers liability claims arising from injuries that occur on the property. Landlord insurance can help cover the cost of repairs, replacement rentals, and legal fees.

Most landlord insurance policies include two types of coverage:

  • Property Insurance: This protects against damage to the physical structure of your rental property, as well as any detached structures on the property (like a garage or shed). Coverage typically includes protection from fires, windstorms, hail, vandalism, and theft.
  • Liability Insurance: This protects you from being held financially responsible if a tenant is injured on your property or if they allege that you have caused them some other type of harm (like Invasion of Privacy or Discriminatory Practices).

Some landlords choose to purchase additional coverage for things like loss of rent (in the event that your property becomes uninhabitable due to an insured event) or water backup/sewer backup (which can become very expensive very quickly if left unchecked).

Ultimately, the amount and type of coverage you’ll need will depend on factors like the location and value of your rental property, as well as the laws in your state. It’s important to work with an experienced insurance agent to make sure you’re getting the right coverage for your needs.


What does rental property insurance cover?

Most landlord building insurance policies include coverage for the following:

  • Fire damage
  • Water damage (from burst pipes, leaks, etc.)
  • Wind damage (from storms, hurricanes, etc.)
  • Liability arising from injuries that occur on the property
  • Vandalism
  • Theft
  • Smoke damage
  • Some policies also offer optional coverage for things like lost rent and business interruption


Why is landlord insurance important?

As a landlord, you are responsible for maintaining your rental property and ensuring that it is safe for your tenants. If something goes wrong and someone is injured on the property, you could be held liable – this is where landlord insurance can save you lots of money and stress. By having adequate coverage, you can protect yourself financially in the event that something goes wrong.


Get landlord insurance today

Insurance is essential for peace of mind. Whether it’s landlord insurance, renters insurance, car insurance or even caravan and trailer insurance – being covered for life’s mishaps allows you to rest assured. If you don’t currently have landlord insurance, or if you feel that your current policy isn’t providing sufficient coverage, speak to a qualified and experienced Ansvar broker today.

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