When you’re renting out a property, it’s important to have landlord insurance. Don’t confuse this type of policy with tenant insurance, which you should require for all of your renters, or homeowner’s insurance, which is what you have on the home you’re living in.
Do I Need Landlord Insurance?
The most important reason to carry good landlord insurance is that it provides liability protection. You’ll get more liability coverage than you do with your regular homeowner’s insurance policy. You need as much liability protection as you can find. If tenants or their guests injure themselves at your home, you’re at risk for being sued.
Landlord Rent Insurance
Another benefit to having a great landlord insurance policy is loss of rent coverage. If there’s a fire or some other covered catastrophe, your tenant will probably have to move out of the home, and you won’t be able to rent it out until the damage is fixed. Your insurance policy will cover the rent that you lose in these situations. It’s a great way to protect yourself financially if something unexpected should happen.