Landlord insurance is a great way to protect your property, and your tenants. Landlord insurance offers coverage to property owners of residential homes, apartments, or condos. If damage occurs at the rental property, insurance will provide protection from financial loss. Finding the right coverage option can be confusing for some people, which is why it is beneficial to work with a property management company as they have the tools and resources needed to provide effective rental insurance and managing your property.

Coverage for Landlord Insurance

Landlord insurance is established to provide coverage to protect against financial loss, but there are numerous insurance options to choose from. Here are some of the different types of rental insurance:
Property damage. This insurance option will protect your personal property and building from fires, storms, theft, vandalism, and also tenant damage.
Liability insurance. Liability provides coverage for lawsuits and claims. If a tenant, visitor, or trespasser is injured on the property, the liability insurance protects you. Limited liability insurance coverage can provide costs for bodily injury claims. Liability insurance for landlords is a must-have as the tenants could sue you for a number of different reasons.
Loss of income. Income loss is another option you can add to your insurance coverage. Loss of income will provide compensation for you if the rental property becomes uninhabitable. Loss of income is set up for issues with the property like a fire that causes a total loss, or even a storm that ruins the home.
Optional coverage options. All insurance policies are set up to provide additional coverage options as needed. Some landlords will add on coverage for personal property protection to replace furnishings in the apartment. Consulting with an insurance agent is the best way to find the right coverage for your needs.

Is Insurance Necessary?

Landlord insurance is set up to protect you from lawsuits, financial loss, and more. Let’s say a storm comes in and tree branches fall on your property, completely ruining the structure. Insurance will provide money to help rebuild the property or to make the necessary repairs. It is important to understand your insurance policy as many of them have a certain deductible that needs to be met in order to file a claim. Since there is normally a deductible that needs to be met, it is a good idea to work that into the tenant rental deposit to help pay for the damage claim if that does occur. You can reimburse the tenant the rental deposit when they move out as long as they have not caused property damage.

While insurance helps to pay for structural damage, the other major benefit of insurance is using it to help pay for costs if someone is injured on your property. If the visitor slipped and fell on ice, or they were injured because of negligence, landlords will most likely face a lawsuit. Liability insurance is the best way to protect yourself and will cover the costs after the deductible. It is important to remember you need liability insurance even if you do not have tenants occupying the residence. People could still walk on the property, or possibly get inside and damage could occur, or someone could be hurt. Insurance is the best way to protect yourself and others.

How Much Does Insurance Cost Landlords?

Insurance options for landlords vary based on the plan you choose. Consult with multiple insurance agencies, or talk to a broker to discuss insurance. Here are some of the elements that impact the pricing of insurance:
The size of the rental unit or units being covered
How old the rental property is
How old the electrical wiring is, and if it is updated with the latest code requirements
Is there a swimming pool on the property? Is it fenced?
If you will allow smokers and pets

Keyrenter Property Management Alexandria, VA, provides residential property management services to landlords of single family homes, duplexes, condos, and small multifamily units. We are not large apartment managers. Our purpose is to help landlords maximize the return on their investment property while eliminating the stressors associated with being a landlord (including bad tenants and maintenance issues). Services we offer include: property analysis, setting rent, tenant placement, leasing services, maintenance coordination, tenant relations, property inspections, rent collection.  We offer superior customer service. Because we know how to find quality tenants that can meet the terms of their lease agreement, using Keyrenter’s 14-point tenant screening process, our eviction rate is below 1%.