Insurance Policies for Landlords
Insurance Policies for Landlords ~ Southern Residential Leasing
One of the most important things you can do as a landlord is to ensure your investment property is protected. This includes protection for property damage, personal property, and rent loss. Understanding the different types of insurance policies for landlords is important, too! There are several to take note of, so be sure to talk to your provider about your needs as a landlord. When it comes to insurance, it’s better to be safe than sorry! Remember that landlord insurance is different than homeowners insurance, as it includes both property and liability protection. If you are transitioning your home into an investment property, you’ll need to make the change to a landlord policy.
Read below to learn about the different types of insurance policies for landlords that you should discuss with your provider. Be sure to also contact us for any questions you have about our property management program!
1. Property Protection
Property protection covers damage to the home from covered incidents including fire, lightning, wind, snow, and other types of damage from nature. This doesn’t always include flood protection, so you will have to take out a separate policy.
2. Personal Property Protection
This policy covers personal property left on-site for maintenance or tenant use. This can include appliances and lawnmowers but does not include tenant property. Tenants will need their own insurance policy to cover any of their own personal property.
3. Liability Protection
Liability protection has you covered if a tenant or a guest gets hurt on the property. If you take out a liability protection policy, legal fees and medical expenses are covered.
4. Rent Loss Protection
If the home goes unoccupied by a tenant, rent loss protection can help you continue to make payments on the home’s mortgage. In addition, if the property is so damaged that it becomes uninhabitable, the policy covers the lost rent and pays you the money you would have made in rental income.
5. Flood Protection
The National Flood Insurance Program (NFIP) can be purchased in addition to your policy. This includes coverage for the building, contents, and replacement costs.
6. Acts of Nature Protection
When a natural disaster strikes, you’ll want to make sure your investment property is covered. Earthquakes, hurricanes, and tornadoes are not always covered by standard policies, so talk to your provider about choosing the best addition for you.
Our friends at BiggerPockets have talked about this, too. Visit here to learn what BiggerPockets has to say about insurance policies for landlords.