What does landlord’s insurance cover?

Do you currently have rental units? If you do, you should know that landlord’s insurance is available to protect your rental properties against the costs associated with certain types of damage and income loss. This type of insurance is important because rental properties are not covered by homeowners insurance or the rental insurance that your tenants’ purchase. The good news is that our agents at Fearnow can find the right landlord insurance policy for your needs.

Understanding Landlord Insurance

Landlord insurance covers dwellings that you rent to other individuals and families. The policies typically contain coverages for property damage, rental default, and liability protection. These protections may sound similar to the protections listed under your homeowner’s insurance policy. However, your homeowner’s policy only covers the property where you and your family reside, which is why an additional policy is needed if you also have rental properties.

  • Rental Property Damage – This coverage protects your property against certain types of damages to the structure and landlord-owned furnishings and items. This includes external buildings on the property, including sheds and detached garages. Events that may be covered include fire, theft, vandalism and tenant-caused damage.
  • Rental Default – If your property becomes completely uninhabitable due to pest infestations, black mold or another covered scenario, your landlord’s insurance policy may reimburse you for lost rental income while you rehabilitate and repair your property.
  • Liability Protection – The liability coverage protects you if someone were injured on your property due to an issue with property maintenance. For example, if your building had a loose stairway railing that results in someone falling, your liability coverage may pay for the individual’s medical bills.
  • Malicious Damage – Intentional damage caused by an angry tenant may or may not be covered under the landlord’s insurance policy. It’s typically policy specific, and it’s important to ask your insurance agent if malicious damage is covered.

What Landlord Insurance Does Not Cover

While landlord insurance is designed to protect you against certain financial losses, it doesn’t typically cover maintenance issues or damage caused by lack of proper maintenance. For example: if the stove stops working due to age or wear and tear, it’s the landlord’s responsibility to replace it out of his or her own finances. It would not be covered under the landlord’s insurance policy.

The tenant’s belongings and personal items are not covered under the landlord insurance. Instead, the tenant would have to purchase a renters policy under his or her name. Landlord insurance also does not cover flooding from hurricanes or strong storms.

Additional Insurance Policies You May Want for Your Rental

Even if you have landlord insurance, there are certain coverages you may want to consider, including guaranteed income insurance, flood insurance, emergency insurance coverage, construction expenses, and umbrella insurance.

  • Income Insurance – This policy helps cover the landlord if the renter cannot make rent or offers a partial rent payment.
  • Flood Insurance – Flood insurance is essential if you live in a flood zone that is known for hurricanes and other strong storms.
  • Emergency Insurance – This type of insurance reimburses your expenses if your tenant has an emergency situation, like a burst pipe. It would cover your expenses to travel to the location and deal with the problem or call a plumber.
  • Construction Expenses – If your building is damaged by a covered event and must incur additional repairs above what is covered by your landlord’s insurance, this policy helps ensure funds are available to bring the building back up to code.
  • Umbrella Insurance – Umbrella insurance is a type of coverage that protects you in the event that a covered event costs more than the maximum monetary amounts listed in the original policies. Umbrella insurance covers the overages.

Getting Landlord Insurance with Fearnow in Florida

If you have rental properties in Florida, our agents at Fearnow Insurance can help you find the right landlord policy for your needs. We can listen to your coverage requirements and create a policy for you. We can also explain the policy and recommend additional coverages, like flood insurance, guaranteed income insurance, and umbrella insurance, as well as answer all of your questions.

To get quotes for landlord’s insurance and to purchase a policy so that your income-producing properties are protected, give us a call at (813) 689-8878. We’d be happy to talk to you about all your insurance needs.