What is Landlord Property Insurance?

Landlord property insurance, also referred to as rental property insurance, provides property and liability coverage to individuals who own and rent units to tenants. If the rental property is damaged by a natural disaster, vandalism, or other cause, then the insurance company would pay for repairs or replacement according to the terms of the policy. It also pays the medical bills, property damage, and in some cases the economic loss of guests who are injured while at the property due to no fault of the tenants. The property types covered by landlord property insurance range from a single family residential dwelling to multiple rental units in one or more buildings. Many insurance plans also provide landlords with legal representation and loss of rental income.

The property insurance pays for damages to the rental building, personal property stored at the building for the landlord’s or tenant’s use, and garages or sheds. Other private structures that are on the property may also be covered by the landlord property insurance plan. Some insurance companies make a distinction between the types of investment property and offer special coverage based on the type of property the landlord owns. Landlord liabilities can vary based on the types of rental property they own, and insurance companies often provide special insurance products to address specific needs. For example, a landlord may be able to purchase landlord condominium insurance to cover condo units that he owns.

The liability protection that insurance companies provide under a landlord property insurance plan covers the expenses associated with bodily injury of anyone who gets hurt on the property. The expenses are often medical expenses up to the coverage amount, but some companies will also pay for the injured person’s property damage or loss of wages. For example, if the landlord hires a painter who slips and falls on the steps leading to the rental building and gets injured, then the landlord can file a claim to pay for the medical treatment up to the amount that’s covered by the plan. The landlord’s insurance company might also cover the painter’s daily wages for each day he is unable to work due to the injury, up to the policy amount. Plans vary, and some insurance companies do not compensate for the injured person’s economic loss.

The landlord may be able to file a claim and receive payment for loss of income up to a defined period of time if the rental unit is uninhabitable or otherwise unfit to rent. For example, the landlord property insurance plan may give the landlord up to one year to make repairs. During that year, the landlord may receive a lump sum or monthly payments based on the average rent she collected from that unit and up to the amount allowed by the policy.