Fact checked by SUZANNE KVILHAUG A quick guide to landlord insurance if you own a property with tenants or rent your lake cottage.
Landlords renting out a residential property (house, vacation cottage, apartment) for the first time may assume that their homeowners insurance will cover all costs in the event of a natural disaster, accident, or other damaging events. That is a rookie error.
The most important takeaways are that landlord insurance is required because homeowner’s insurance does not cover a home that is not occupied by its owner.
Property damage, rental income lost due to a property’s temporary inhabitability, and liability protection are the core coverages of landlord insurance.
Coverage for income lost as a result of a tenant failing to pay rent, flood damage, costs associated with bringing a damaged building up to code, and other coverages are available as additional riders.
Why You Need Landlord Insurance There’s a good chance that your policy only covers homes that are owned by you.
The coverage ceases to apply if you begin renting to other people. In addition, since renters typically are not held liable in the event of a major appliance failure, a person being injured on the property (through no fault of the tenant), a forest fire causing damage or destruction to your home, or burglars simply vacating the property, you may be left to fend for these and other misfortunes.
