Share This Post:
Homeowners insurance typically covers owner-occupied single-family residences, which means if your home is occupied by tenants, you are not covered. For properties rented out on a long-term basis, landlord insurance is essential. We’ve compiled some of our best resources on everything you need to know about Landlord Insurance.
1. The Basics
Landlord Insurance policies are often 20-30% more expensive than homeowners insurance policies, yet they include the necessary liability protection landlords need. As a landlord, you have an increased responsibility for injuries on the property, so you need that extra layer of liability protection.
Most landlord insurance policies include:
Most landlord insurance policies DO NOT include:
To learn more, see our blog post What to Expect in a Landlord Insurance Policy
Types of Landlord Policies:
While landlord insurance policies vary by provider, there are typically three levels of dwelling policies you’ll encounter: DP-1, DP-2, and DP-3.
To learn more, see our blog post Why DP-3 Policies Offer the Best Coverage
An umbrella policy is a policy that offers liability protection beyond your standard dwelling policy. The simplest policies start at an extra $1 million in coverage, which can be extremely helpful in the unlikely scenario of an expensive lawsuit.
In addition to the added financial protection, umbrella policies offer an extra layer of claims coverage that are generally excluded from standard policies including libel (written false statement damaging to a person’s reputation- watch out for social media!), slander (spoken false statement damaging to a person’s reputation), and mental anguish (a high degree of emotional pain, distress, or suffering that is a direct result of a traumatic event). Plus, umbrella policies cover personal circumstances outside of your rental properties, such as your dog biting someone at the park.
To learn more, see our blog post Understanding Umbrella Policies
Landlord Insurance does NOT cover tenants’ belongings. It is crucial that your tenants have Renters Insurance to cover:
Renters Insurance is luckily incredibly affordable.
To learn more, see our blog post Why Renters Insurance Matters to Landlords
Landlord Insurance Pitfalls:
At Visio Lending, we have been helping landlords grow their rental portfolios for years. Here are some of the common pitfalls we have seen landlords encounter:
To learn more, see our blog post 3 Common Landlord Insurance Pitfalls
Here are some of our favorite resources on landlord insurance:
Landlord Insurance: Costs, Providers, & What to Avoid by FitSmallBusiness
The Ultimate Guide to Renters Insurance by Landlordology
A Quick Guide to Landlord Insurance by Investopedia