What insurance do landlords need to have?
As an owner of a condo, apartments or rental homes, you don’t need insurance as long as your tenants have insurance, right? Not exactly.
In order to be completely covered, it is important to insure your properties with your own landlord insurance in addition to requiring your renters to have renter’s insurance.
Why do landlords need insurance on their properties?
Let’s say that one of your tenants has a guest who trips and falls in the apartment and hurts themselves. If that visitor fell over their own shoes, or fell in the shower, you as the landlord most likely won’t have a liability claim on your hands. The accident would probably fall under the renter’s liability insurance. However, if the visitor tripped due to negligence on your part, like fraying carpet or broken steps in a hallway, the visitor can file a claim against you to cover the cost of medical care and may even file a lawsuit against you if the injury is severe enough.
With the right landlord insurance, it is possible to protect your business and pocketbook from such liability claims.
What types of coverage does landlord insurance provide?
Property damage: This covers any damage to your buildings and personal property due to weather, fire, vandalism or tenant damage.
Liability insurance: Liability insurance protects you against any claims and lawsuits if a tenant, visitor or trespasser is injured on your rental property. These costs can include medical payments, funeral costs and legal fees. This also includes coverage in case you are held responsible for damage to another person's property. For example, if you don’t fix a leaking water pipe and the leak destroys a tenant's personal artwork collection, a liability claim can be filed against you.
Loss of income: This coverage will help to provide compensation for lost income in the event one of your rental properties become uninhabitable because of weather or fire.
You can also buy additional coverage, such as theft protection or landlord contents insurance to cover your personal items such as furnishings or carpet in the rental property.
Do my tenants need insurance?
Because accidents can occur and claims can be made against either the renter or the landlord based on the incident, it is important to have insurance as a landlord and to require tenants to have rental insurance as well.
Although there is no federal or state law requiring tenants to have renters insurance, as a landlord it is within your legal rights (and recommended) to require this as part of the rental agreement. It’s also a great idea to have the tenant list the landlord as an “additional insured” in their insurance.
Protect your properties and yourself
Your rental property is not only a significant source of income for you, but also a home for your tenants. Protect your investment, and your tenants.
If you're a landlord of a rental property, talk with a local insurance agent to find the right landlord insurance that fits your budget and property needs, or simply call: 844-837-2869. Queen City Risk Management can help.