There a various types of insurance a landlord needs to be aware of to protect themselves and their asset. As insurance coverage and regulation often changes, be sure to consult with your insurance agent on a regular basis when insuring your entity, your investment, or any property.
Homeowners Insurance: Homeowners insurance covers losses and/or damages to a person’s house and their assets within the home or on the property. This is a type of property insurance. Homeowners insurance also provides liability coverage for the homeowner against accidents in the home or on the property.
It is good practice to have professional property managers be additionally insured on Homeowners Insurance policies.
This insurance also will be the indicator as to whether renters are allowed to have pet’s such as dogs, and what types of breeds are allowed under that insurance policy. If a homeowner insurance policy is strict against certain breeds and a tenant has that breed as a pet, the homeowner’s insurance policy may not cover accidents or damages involving that restricted breed. It is important for a landlord to know what is covered or isn’t covered in this policy.
This insurance is paid by the homeowner.
Renters Insurance: A typical renters insurance policy protects the tenant’s personal property in the rented space from unexpected circumstances such as theft, a fire or sewer backup damage. This policy will pay the tenant for lost or damaged possessions. It can also help protect the tenant from liability if someone is injured on the property of which they are renting.
Landlord’s should require renters to have Renters Insurance. This is added coverage for liability and will give the tenant and owner peace of mind knowing that in unexpected circumstances the tenant’s belongings will be covered. Otherwise, homeowners insurance does not typically cover the tenant’s personal property. Renters insurance is in the best interest of the tenant.
This insurance is paid by the tenant.
Tenant Liability To Landlord Insurance: Tenant liability insurance to the landlord pays the landlord for damage to the landlord's property when a tenant is found legally liable. This coverage is typically limited to fire, smoke, explosion, water damage, or falling objects, for example.
Tenant liability to landlord insurance is vital in covering areas where Homeowners insurance and renters insurance fall short. This actually covers damage to the property caused by the tenant, protecting both the landlord and the tenant from accidental damage or neglect.
This insurance is paid by the tenant and is often required in the leasing process by professional property managers.
When in doubt, please consult with a professional insurance agent on the latest and greatest insurance practices. It’s important to have your assets covered!
