Landlord insurance coverage is a type of property coverage. It comes with more than one protection including property and liability. Whether you have multiple properties or plan on subletting your home for a short while when you’re traveling, landlord insurance is the best way to secure your home.
One thing to keep in mind about landlord insurance is it is different than the homeowner’s insurance but there are many similarities. Both the homeowner’s insurance and the landlord insurance cover the property against structural damage.
It also comes with liability coverage. What this means is assume a tenant got hurt in your property and decides to sue you for the damages. Any financial damages to you are taken care of by the liability coverage. For example, the liability coverage can help you cover the tenant’s medical expenses you are mandated to pay.
Property Protection Coverage
Property protection coverage that comes with landlord insurance helps cover the expenses related to structural damages. This coverage is for the property the policyholder is renting out though. It doesn’t cover your own home. For that, you need to get homeowner’s insurance.
Learn more about homeowner’s insurance.
If your property was damaged by an event that is covered by your policy, the landlord insurance will help you out with the expenses. Generally, landlord insurance covers structural damages caused by hail, fire, lightning, floods (in some policies), and other covered losses.
The landlord insurance won’t cover the cost of damage right away though. It will only help you cover the expenses of repair. So don’t expect money from your landlord insurance policy before you start doing any repairs.
Liability Protection
Liability protection coverage is included in most types of property insurance. It basically works like this; if someone was injured in your rental property and you are the one who’s found responsible, you will pay the legal expenses with the liability coverage.
While the property protection coverage can be around $30,000 to $50,000, the liability protection coverage is $1 million in most landlord insurance policies.