Rental Property Insurance covers landlords and property owners, giving them financial protection against damages, liability claims, and loss of rental income.
This article will tell you everything you need to know about rental property insurance, including what it covers, how it differs from homeowners insurance, and how much it costs.
Rental Property Insurance also called Landlord Insurance, protects owners who rent out their homes or units. It differs from homeowners insurance, which covers a property you live in. Rental property insurance has an impact on properties used for rental purposes.
This insurance covers the physical structure, the landlord’s personal property used to maintain the place, and liabilities that might result from accidents or injuries on the property.
Rental Property Insurance offers key coverages to protect the property and the landlord’s interests. Here are the main areas it covers:
Home insurance protects the physical structure of your rental property from damage caused by perils such as fire, wind, hail, and vandalism. It helps pay to repair or rebuild if a covered event damages or destroys your property.
If you own personal items at the rental property (such as appliances or maintenance tools), rental property insurance covers the costs of replacing or repairing them if someone damages or steals them. This coverage applies to items the landlord owns, not the tenant.
If your rental property becomes unlivable because of damage from a covered risk, income loss coverage makes up for the rent money you’d miss out on while fixes happen. This makes sure you don’t face money troubles while your property gets fixed up.
If a renter or guest gets hurt on your property, liability coverage helps pay for the medical bills and lawyer fees tied to the injury. It also pays for damages if the renter sues you for not being careful enough.
A lot of property owners think that a regular homeowners insurance plan will protect a rental property. But this isn’t true. Homeowners insurance is made to cover homes where the owner lives, while landlord insurance is meant just for rental properties.
Main differences include:
Landlord insurance has coverage for lost income, which homeowners insurance doesn’t give.
Landlord insurance offers better liability coverage that takes into account risks linked to tenants and visitors.
Homeowners insurance protects the personal things of the homeowner, while landlord insurance covers property used to maintain the rental unit (like appliances tools).
Houses in risky areas (think disaster-prone zones or high-crime neighborhoods) cost more to insure.
Pricier homes mean higher insurance bills.
Broader policies that cover more will bump up your premiums.
Opting for a bigger deductible can cut your premium, but you’ll pay more when you make a claim.
Rental Property Insurance will set you back $800 to $2,500 each year, based on these aspects.
To keep your rental property safe, you need to get the right coverage from a company you can trust. Check out BuildersRisk.net now to compare prices and find the best insurance for your rental property that fits your needs. If you own one rental unit or several properties, BuildersRisk.net has insurance options you can customize to protect your investments.
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You bet. Renting out your place on Airbnb or Vrbo means you need special coverage. Regular landlord insurance might not cover short stays, so make sure to check your policy or get a short-term rental insurance add-on.
Whether you’re renting your property for half a year or many years, rental property insurance is crucial to protect your investment. Long-term rentals face many risks, including damage by tenants, lost rental income, and liability claims.
No. Landlord insurance doesn’t cover the tenant’s personal items. Tenants need to buy renter’s insurance to protect their stuff from theft, fire, or other risks.
