landlords' Insurance
Landlords' insurance is an insurance policy that covers a property owner from losses associated with rental properties. The policy covers the dwelling, with the option of insuring any personal contents that belong to the landlord inside the residence. Landlords' insurance is often referred to as buy-to-let insurance; however, buy-to-let insurance is a type of landlords' insurance.
Landlord insurance for some properties may be too costly. Therefore it’s important to have a local and structural survey conducted on the property before any purchase. This can act as an aide in the search by connecting the most efficient insurance policies for each potential property to ensure that overall costs don’t exceed planned financial objectives.
Like a homeowners policy, a landlord policy typically helps protect the dwelling itself (and other structures on the property, such as a shed or fences) if there's damage from a peril such as fire, lighting, wind, hail or another covered loss. To purchase homeowners insurance, one must reside in the home. If you plan to rent out the home to tenants, you'll need landlords’ insurance.
Other key differences between homeowners and landlord policies include:
Personal property coverage
While homeowners insurance may help protect many kinds of belongings, such as furniture, clothing and computers, landlord insurance typically only provides coverage for items used to service the rented property. Therefore, if one leaves personal items behind that are not used to service the rental property, those items under the landlords' insurance won't be provided protection. It may, however, help cover items such as a snowblower or lawn mower that one stores on site to help maintain the property.
Liability coverage
Landlord insurance typically only provides liability coverage relating to the rented premises. If a tenant is hurt in the home you're renting out and the owner is found legally responsible, the liability coverage on the landlord's policy may help cover the resulting medical expenses or legal fees. Meanwhile, the liability portion of a homeowners policy typically covers you and relatives who live with you in the home, whether the accident happens in your home or not.
Remember
Neither landlord insurance nor homeowners insurance will typically protect personal items owned by your tenant. That's why you may want to make renters insurance a condition of your lease. Renters insurance may help protect your tenant's possessions, and also provide them with some liability protection.
Landlord insurance for some properties may be too costly. Therefore it’s important to have a local and structural survey conducted on the property before any purchase. This can act as an aide in the search by connecting the most efficient insurance policies for each potential property to ensure that overall costs don’t exceed planned financial objectives.
Like a homeowners policy, a landlord policy typically helps protect the dwelling itself (and other structures on the property, such as a shed or fences) if there's damage from a peril such as fire, lighting, wind, hail or another covered loss. To purchase homeowners insurance, one must reside in the home. If you plan to rent out the home to tenants, you'll need landlords’ insurance.
Other key differences between homeowners and landlord policies include:
Personal property coverage
While homeowners insurance may help protect many kinds of belongings, such as furniture, clothing and computers, landlord insurance typically only provides coverage for items used to service the rented property. Therefore, if one leaves personal items behind that are not used to service the rental property, those items under the landlords' insurance won't be provided protection. It may, however, help cover items such as a snowblower or lawn mower that one stores on site to help maintain the property.
Liability coverage
Landlord insurance typically only provides liability coverage relating to the rented premises. If a tenant is hurt in the home you're renting out and the owner is found legally responsible, the liability coverage on the landlord's policy may help cover the resulting medical expenses or legal fees. Meanwhile, the liability portion of a homeowners policy typically covers you and relatives who live with you in the home, whether the accident happens in your home or not.
Remember
Neither landlord insurance nor homeowners insurance will typically protect personal items owned by your tenant. That's why you may want to make renters insurance a condition of your lease. Renters insurance may help protect your tenant's possessions, and also provide them with some liability protection.