When you’ve got rental property, whether it’s one property or several, it’s important to protect your investment. You’ve already probably got a lot on your plate, from finding the right tenants to dealing with any repair work, so keep your mind at ease by making sure you have a great landlord insurance policy.
What is Landlord Insurance?
Landlord insurance provides coverage for home or property owners renting out residential properties like a home, condominium, apartment, or vacation home. If you have a home you’re only renting out for a few weeks, your current homeowner’s insurance policy should provide coverage. However, let’s say you decided to move into a bigger home and instead of selling your previous home, you want to rent it out to make some extra monthly income. Or, perhaps you own a vacation home and are renting it to several different people or families throughout the year. This is when you need to consider landlord protection insurance.
If you are currently living in your property at the same time as your renters, you don’t need landlord insurance. A homeowners insurance policy will cover you if you’re renting out a portion of your home, like an extra bedroom or the basement. Most homeowners insurance policies will cover the occasional short-term rental.
What Does Landlord Insurance Cover?
Landlord insurance provides:
- Financial loss for property damage from a fire, tornado, storm and other natural disasters.
- Coverage for your possessions (not your tenant’s possessions) from theft from a break-in or vandalism.
- Liability coverage for medical and legal bills if someone injures themselves on your property due to negligence on your part (such as from slipping on icy or damaged stairs) whether it is a tenant, one of their guests, or even a trespasser. Liability coverage will also protect you against having to pay for damage to tenants’ possessions if they are damaged from issues like a pipe bursting, for example.
- Coverage for structures on your property like sheds or garages, as well as belongings you’ve left inside the home like appliances or even tools.
Plus, should your home become uninhabitable at any point while you’re renting it, landlord insurance will help cover loss of income due to any circumstances beyond your control.
What Does Landlord Insurance Cost?
The cost of landlord insurance will vary based on the coverage options you choose and the type of property you’re covering. Other factors like geographic region, how many rental units you have, the age and condition of the property or building and if all systems are up to code, whether you have safeguarding options like fire sprinklers, a burglar alarm, or gated access, if your property has a pool and if you allow tenants to smoke inside will all affect the cost of your coverage.
Having a rental property can be a great investment. While not required by law in the state of Ohio, it’s still highly advisable to look into a landlord insurance policy any time you’re managing a property and collecting rent. If you have any questions about landlord protection insurance to protect your rental properties, contact Machor Sage today!