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Insurance Concerns for Landlords

Insurance Concerns for Landlords

Making sure you and your property are properly insured is critically important for landlords. Not taking this step can leave you exposed to significant financial losses and liability. If you’re new to real estate investing, however, you may not be familiar with these essential insurance concerns for landlords. 

Landlord insurance and why it’s important 

The one constant in property management is to expect the unexpected, from surprise repairs to tenants who decide to leave on a moment’s notice. Landlord insurance, also called rental property insurance, helps protect you from the unexpected. It covers liability, property damage, and loss of rental income. A good policy will provide peace of mind for you, the property owner.

Let’s look at critical insurance concerns for landlords:

What does landlord insurance cover?

What’s covered depends on the specifics of the policy. You’ll want a policy that at least covers these basics:

Structure

Your rental property insurance will cover the structure of your property if it is physically damaged. This includes things like the walls, roof, foundation, windows, etc. Under what circumstances your policy will pay depends on the policy. Typically, cheaper policies will specifically list certain perils, and coverage will only apply under those circumstances. More expensive policies will cover damage caused under any circumstance except specific listed exclusions.

Personal property

Your landlord policy will also cover the contents inside your property that belong to you, but not the personal property of your tenant. For example, what happens if you furnished your property with a refrigerator, but your tenant brought their own washer and dryer, and a fire damaged all three appliances? Your insurance policy will replace your refrigerator but not their washer and dryer. When applying for a policy, be sure to check the limits of this coverage, because it can vary.

Liability

In the unfortunate circumstance a tenant or a guest is injured on your property, your policy’s liability coverage will protect you from financial harm. Liability coverage will also protect you financially if a vendor is injured while performing repairs or maintenance on your property.

Loss of rental income

In the event a covered circumstance, like a fire, renders your property unrentable, your policy will protect you from loss of income while you make repairs. Again, check the details of this coverage in the policy you choose. You’ll need to know important details, like for how many months of lost income the policy protects against.

What about vendors?

Before you send a repair person to your house, be sure to check that they are properly insured for liability and workman’s comp. This will not be part of your landlord’s policy. Insteads, it’s separate insurance coverage that the vendor should carry for their own business.

Learn more in this quick guide to landlord insurance.

How Greyhaven can help

When you hire Greyhaven to manage your property, we handle a lot of these details for you. For example, all repair and service companies Greyhaven partners with are fully insured for your protection. If you’d like to learn more about how Greyhaven can help you get the most out of your property, give us a call at 423-648-6676.