Landlord Insurance and Why You Need It
Your landlord policy protects your property when a covered loss impacts the physical property of the building or space that you’re renting to tenants. From fire to break-ins, you can find coverage that can help spare your finances. For property owners, this specialized type of insurance is essential because tenants can sometimes cause costly damage. You need a policy that works as hard as you do, and one that can benefit your business needs as well. As for the business expense of paying for landlord and umbrella premiums, you’ll likely be able to write the cost off through tax deductions, making excellent coverage more affordable than ever.
Reduce Break-ins With Inexpensive Security Measures
One of a landlord’s top priorities is to help ensure tenant safety. Adding security measures like installing security doors and deadbolt locks can go a long way to prevent break-ins. By carefully controlling keys and replacing locks as tenants change over, you can minimize theft with a nominal cost. And well-lit exteriors paired with motion-sensitive video systems also provide an inexpensive deterrent to thieves.
Landlord Insurance Coverages
Landlord insurance covers rental business essentials that are typically not covered under other types of homeowner’s policies. Because it’s a business owner’s policy, it covers damages to your rental property, like the physical structure of the building, and its lighting fixtures, for example. This coverage usually extends from your property that’s left in the living space all the way to the items you own that are safely stored outside — on rental property — as well. For instance, if your rental’s kitchen comes with appliances in the kitchen or you keep a new lawn mower in the garage, these items would be covered and protected. Here’s what landlord insurance can cover:
Building coverage. When a covered loss occurs and your building’s damaged, our property coverage will go to work and help you pay for replacing or repairing damages, protecting you from greater financial losses.
General liability insurance. You’ll get the coverage your business needs because accidents happen, and we all make mistakes. Make sure you’re protected from any bodily injury, property damage and/or personal and advertising injury expenses that arise from the operations of your rental properties or condo association.
Commercial umbrella liability protection. Providing additional protection on top of your primary general liability coverage, our commercial umbrella liability protection gives you extra security against legal and financial actions that can help protect against financial losses.
Medical expense coverage. This important coverage helps cover the cost of immediate medical care for injuries that take place on your premises, even when your business isn’t liable.
Auxiliary structure coverage. Outbuildings like sheds, unattached structures such as garages or fences — even swimming pools and clubhouses — can be covered because these items provide a service to your rental.
Flood insurance. Offered through the National Flood Insurance Program, our flood insurance coverage can safeguard your investment properties when the waters rise.
Does Landlord Insurance Cover Tenant Injuries?
Yes, under certain circumstances, your landlord insurance can cover tenant injuries. But it depends on how the injury occurred, and who was found legally responsible for the injury and other factors.
Suppose a tenant is cooking and burns their hand while reaching into the oven. Because the tenant failed to take necessary precautions and was burned as a result, the tenant would likely be held responsible. However, if a window in your rental was difficult to open and a tenant was injured while attempting to open it, they may have a case to be reimbursed for medical expense related to that injury. If so, your landlord insurance would kick in and cover those expenses — up to the policy’s limit.