What Is Landlord Insurance and Is It Required?

October 26, 2016

What is Landlord Protection Insurance? 

Landlord Protection Insurance is an insurance designed for non-commercial landlords who own and rent one to four unit tenant-occupied residential properties such as residential homes, apartments, or condos.

It can help protect your residential rental property from damage from fire, break-in, severe weather, and more and can also help protect you, as a landlord, from certain types of liability unique to you such as wrongful eviction and entry.

You can also get insurance to help cover loss of income in the event that your rental units become uninhabitable due to circumstances beyond your control.











Is Landlord Insurance Required?

No. Landlord Insurance isn’t legally required, however, it is in your best interest to carry landlord insurance if you are collecting rent and renting out/managing a property.

You really should have landlord insurance if you do not occupy the same residence as your tenant, if you are renting out your own home temporarily, or  if you are sharing accommodations, such as your basement level, with a renter.

It protects you from financial loss resulting from accidents, natural disasters, injuries, and other liability issues and situations outside of your control while providing repairs and replacements for rental property structure and reimbursements for loss of income .

Is Landlord Insurance Right For You?

Case #1: My family owns a second home that we rent out. Is Landlord Protection insurance right for me?

Yes. Landlord Protection insurance is designed for landlords just like you.

Case #2: I own a small building with four apartments and retail space on the ground floor. Is Landlord Protection insurance right for me?

Landlord Protection insurance is intended for non-commercial residential properties. The retail space makes the building mixed-use, which is not a type of property Landlord Protection insurance covers.

Source: SafeCo, Trusted Choice
Contributor: Smruthi Sriram