Landlord Insurance: What Is It and What Does It Cover?
Updated: Nov 23, 2021
Do you own a vacation home or an apartment that you rent out for most of the year? Have you ever considered what you would do should an unfortunate incident happen on the property? Who should cover the expenses—you or the renter?
If you own a property that you are leasing out, you should consider getting landlord insurance. It is the perfect precautionary measure designed to give protection and peace of mind to owners who rent out their real estate investments.
Learn more about this type of insurance when you keep on reading.
What Is Landlord Insurance?
When you own a residential property, like a cabin, cottage, apartment, or house, and you rent it out, the property will not be covered by traditional homeowners insurance. This is the primary reason why you need landlord insurance.
Renters are generally not liable when something unfortunate happens in the property. Natural calamities can happen, a burglar can empty the place, or a person can get injured, so you need to make sure you have landlord insurance coverage.
What Does Landlord Insurance Cover?
If you get a landlord insurance policy, you will most likely get coverage for three main elements:
Property Damage - This is coverage in the event that your property and the furnishings within it suffer from electric or gas malfunctions, vandalism, fire, natural disasters, earthquakes, and irresponsible tenants. Some insurance companies cover replacement costs or the actual cash value.
Loss of Rental Income - This coverage involves temporary rental reimbursement if your property is damaged by infestations, moulds, termites, sinkholes, or other things that can make it uninhabitable.
Liability Protection - This covers legal and medical costs for when a visitor or tenant suffers injury because of property maintenance issues.
Landlords can also extend their landlord insurance with building insurance, contents insurance, or a combination of both.
What Is Building Insurance?
A building cover policy generally protects your property’s structures, including fixed appliances, cables, pipes, fixtures, fittings, awnings, and external facilities like swimming pools and fences.
The landlord will be covered should there be complete or partial destruction of the property, as well as the loss of rent while the property is still unlivable. Without this, you will need to take all of the expenses out of your pocket, which can be a nightmare, especially if you can’t earn from the property once it’s damaged.
What Is Contents Insurance?
Contents insurance covers the items you added to make your rental home more livable. For instance, contents-only insurance covers theft, damage, or loss of furniture, appliances, and additional furnishings like carpets and blinds.
What Are the Additional Coverages You Can Get with Landlord Insurance?
Depending on the provider, you can get optional add-ons to your policy for an extra cost. Here are some examples:
Civil unrest or rioting
Get Landlord Insurance at New Wave Insurance
No one wants unexpected issues and problems with their rental property, but there’s always a chance that they will occur. If you want to keep your property and your assets safe, make sure you find the right provider and acquire a landlord insurance policy right away.
If you’re looking for a landlord insurance specialist for your property on the Gold Coast, partner with us at New Wave Insurance. Book a free 15-minute consultation, and let’s discuss the ideal policy for your needs.