As a landlord, you may enjoy a reliable income stream as you provide temporary housing to renters. However, owning buildings, allowing other parties to occupy them and navigating various laws and liabilities requires responsible risk management. This means you cannot afford to be underinsured, and while requiring your tenants to carry renters insurance may assist with overall financial security, you should also be aware of other needs.
What Is Landlord Insurance? 
Also known as rental property insurance, these policies should be considered essential for any landlord or property management company. Landlord insurance can couple with renters insurance to create a two-pronged financial shield. While the latter is necessary for tenants to protect their personal property, finances and assets, the former should be a priority to ensure you’re able to manage losses involving the outside of the building, common areas and various incidents. While not legally required, landlord insurance should be a top priority to ensure you do not face extensive out-of-pocket losses following accidents or other incidents.
What Does My Policy Cover?
Landlord insurance policies typically include the following features:
- Buildings coverage—This can financially protect you from damage to the exterior of a building, which renters typically have no responsibility for, as well as common areas and plumbing, HVAC and electrical systems.
- Landlord personal property coverage—This may cover personal belongings you own and leave on the premises of a rented property, such as lawnmowers, snowblowers and other maintenance equipment.
- Loss-of-use coverage—If units or an entire rental property are rendered temporarily uninhabitable, your insurance may help you recoup the lost income you would have earned had you been able to rent them out as usual.
- Landlord liability coverage—If you’re accused of being responsible for other parties’ losses, such as if tenants are injured in poorly maintained common areas, this part of your policy may assist with losses and legal costs.
We’re Here to Help
Contact Arches Insurance in Pleasant Grove, Utah, today to learn more about your landlord insurance needs and get a free quote.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.