Should you be a property owner who owns a home that is rented out to other individuals, then you are deemed a landlord, and that means you will need the kind of insurance that is specifically designed for landlords.
Landlord insurance is yet another kind of property and casualty coverage that is offered to people who are, again, owners of residential property that is rented out to others.
A landlord policy is meant for all those who rent out an apartment, home, condo or townhouse. No matter if you reside in the property a few months a year, if you also rent the space more than a few weeks per annum, you will be considered a landlord and mandate the proper insurance coverage.
A landlord policy functions a bit differently from either homeowners or condo coverage. Landlords need only insure the property itself and give the tenants the responsibility of covering their own personal belongings. As a result, a landlord policy will normally cover the exterior structure as well as common areas and smaller structures on the property, like a garage or shed. This coverage safeguards the landlord from physical loss as well from the threat of lawsuits resulting from liability issues. Again, it is important to remember that this kind of policy does not cover tenants.
Should an accident or other covered event occur, the landlord will need to file a claim and then pay any deductible before being reimbursed for damages.
Landlord policies are all somewhat universal, although they can vary based on the properties being covered. For instance, landlord coverage for an apartment building with many units will likely have some different offerings and some exclusions that would not be available for an owner of a rented single-family home. Some landlord policies actually come with loss-of-use coverage as a standard aspect of the policy. Others may need added riders to cover such extras.
The big plus of this insurance is the peace of mind of knowing that you are covered against loss of such a significant investment. Having the proper landlord insurance coverage means you can safeguard your property or properties and then allow the tenants to handle the rest of their own insurance needs.