Property Management Blog

What Kind of Insurance Should Landlords Get?

When you become a landlord, you need adequate insurance coverage to take care of your investment property and protect your investment interests.  We recommend that you work with a good, experienced insurance agent who can keep you protected.

Renter's Insurance

You should require your tenants to get a tenant policy, which covers their belongings and their own liability.  These policies are extremely reasonable.  Ask that their policy includes you as an additional insured.  This will give you some extra protection that you need.

Landlord Policy

When you purchase a landlord policy, make sure it covers your building structure as well as your own liability.  You don't need anything that covers the tenant's personal possessions because that is the tenant's responsibility.  It's important that you have an all-risks provision in your policy and that you are covered for anything that might happen.

Lost Rent Protection

Protection against lost rents protection is very important.  Some agencies automatically provide it, but some don't.  Make sure it's included in your policy in case something happens that affects your rental income.  For example, if mold is discovered  and during the period of cleaning and repairing, the tenants have to move out, you aren't collecting rent.  Make sure your lost rent is covered, so you get your rent paid, even though the tenant is not in the property.

Liability Coverage

Review your liability coverage.  For just an additional $30 or $40 a year, you can increase the standard $300,000 policy to a million dollars in coverage.  That's well worth the cost.  You also need to make sure that you have coverage for any damage caused by your tenants.  In addition, ask your insurance about an umbrella liability.  Usually, they are quite reasonable.