Landlord Insurance

Landlord Property Protection

The property protection in a landlord insurance policy typically helps cover physical property related to the home you're renting out. This may include the dwelling itself and equipment you keep on site to help maintain it. Coverage generally includes:

• Dwelling
  This coverage helps pay to repair your rented home, condo or apartment if it's damaged by fire, lightning, wind, hail or other covered losses.
• Other structures
  This part of your policy helps pay to repair detached structures on your rental property, such as detached garage or fence, if they're damaged by a covered loss.
• Personal property used to service the rental
  If you leave a lawnmower or snow blower onsite to maintain your rental property, landlord insurance may help cover this equipment if it's damaged. However, if you leave your personal bike or DVD player at the home you rent out, it likely won't be covered under your landlord policy.

All of the above types of coverage are subject to the deductibles and limits stated in your specific landlord policy. Your deductible is the amount you'll pay for a covered loss before your landlord insurance kicks in. A limit is the maximum amount your policy will pay after a covered loss. Each coverage typically has its own, separate deductible and limit. You may be able to set your own deductible and limit amounts for these coverages.

Landlord Liability Protection

The liability portion of a landlord insurance policy may help you pay for another person's medical bills or your legal expenses if someone else is injured on your rental property and you're found responsible.

For example, if your tenant falls down stairs at your rental property and a court determines that you failed to maintain the stairs and/or railing, you could be held responsible for your tenant's medical, legal and other costs. In that case, your landlord liability coverage may help pay for those expenses, up to your policy's limits. You typically won't pay a deductible for a liability claim.

Extra Landlord Coverages to Consider

Depending on the neighborhood, geographic area or condition of your rental, you may want to consider adding on some optional coverages to your landlord policy. These coverages may include:

• Vandalism
  You may want optional coverage to help you pay to repair vandalism damage. If your property is vandalized, that type of damage typically isn't covered by a traditional landlord policy unless you purchase vandalism coverage.
• Burglary
  While a standard landlord insurance policy may help pay to repair your home if it's damaged in a break-in, it typically won't pay to replace stolen items. Optional coverage may be available for theft of items you keep on the property to help maintain it, such as appliances or a lawnmower.
• Rental property under construction
  Are you gutting or renovating your rental or building a new dwelling? You may be able to purchase additional coverage to help protect the structure until it's ready to be occupied.
• Building codes
  If you're repairing or replacing part of your rental after it's been damaged, you could be legally required to upgrade items like wiring or ventilation, says the International Risk Management Institute. This is because city or county codes may have changed since your property was originally built. This coverage may help reimburse you for those additional costs.

Talk with your local agent to learn what optional coverages may be available and for help understanding how they may help protect you as a landlord.

What's Usually Not Covered by Landlord Insurance?

While landlord insurance may help pay for expenses stemming from a number of sudden and accidental losses, you'll likely find that some things are excluded from the policy's coverage. A landlord policy may not cover:

• Maintenance and equipment breakdowns
  If the furnace or dishwasher in your rental property breaks down, you'll likely have to pay out of pocket for any necessary repairs or replacements.
• Property you share
  If you live on the property and rent out a room or another floor to a tenant, you're typically not eligible for a landlord policy, according to the National Association of Insurance Commissioners. Landlord policies are designed for "non-owner-occupied" property. Talk to your insurer about whether you can add coverage to your homeowners policy for the section of your property you're renting.
• Tenants' belongings
  Landlord insurance generally does not cover your tenant's personal possessions (electronics, clothes, etc.). For that protection, your tenants will need to purchase their own renters insurance policy. Some landlords require tenants to show proof of renters insurance before approving their rental contract. This helps renters pay to repair or replace their personal belongings, such as furniture and clothing, if they are damaged by a covered peril, such as fire or theft.

Ready to rent out a property you own to tenants? Reach out to Cottle Insurance and a member of our team can explain what options are available so you can choose the coverages that are right for you.