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Do I Need Landlord Insurance?

Orange model house sitting on investment property insurance documents
Orange model house sitting on investment property insurance documents

Although it’s not legally required, you may need landlord insurance if you own rental units. Here’s how landlord insurance works and who should have this type of coverage.

What Is Landlord Insurance?

Landlord insurance is a type of property insurance. It offers financial property from damage and personal injury sustained on your rental property. A “rental property” in this context can be:

  • A unit you own to rent out; or
  • Your own home if you decide to rent it out.

Landlord insurance usually covers certain repair and replacement costs, such as:

  • Damage caused by tenants e.g. commercial or residential tenants
  • Damage to your personal property
  • Loss of income if you can’t rent your property due to damage
  • Damage to the rental structure e.g. fire damage

It also covers certain medical costs and legal fees if a tenant files an injury claim against you.

What’s Not Covered

Standard landlord insurance doesn’t cover all damage. Exclusions include:

  • Flood damage
  • Burglary
  • Vandalism
  • Code obligations e.g. you need to bring your building up to certain code standards

You will need extra insurance coverage for these elements.

Benefits of Landlord Insurance

To answer this, let’s consider the risks of not having landlord insurance.

Without landlord insurance, you’re solely responsible for rental repair and replacement costs. And without business interruption coverage, you’re not protected if you can’t rent your property.

Finally, you’ll need to pay damages and legal fees from your own pocket if a tenant makes a successful civil claim against you.

How Much Landlord Insurance Do I Need?

It all depends on the level of coverage you require. To determine how much landlord insurance you need, consider:

  • The costs of repairing or replacing the rental property.
  • How much income you may lose after severe property damage.
  • The potential costs of liability claims for your property.
  • How many rental units you have.

Choosing the right level of damage cover, and liability protection, is complicated. Adion Financial can help if you’re unsure what coverage you need.

Do I Need Both Homeowners Insurance and Landlord Insurance?

Maybe. Let’s consider why.

  • Homeowners insurance covers your primary residence. This is where you live. The policy covers your property and personal belongings.
  • Landlord insurance covers a tenant-occupied property.

If you’re renting out your home in any capacity, your homeowner’s insurance might not cover you. You will need homeowners insurance and landlord insurance.

For example, say you decide to rent your home, or part of your home, on a short-term basis. You may need short-term rental property insurance, even if you’re still occupying it. And if you rent your property more frequently, you will certainly need landlord insurance.

Our team can explain what each insurance policy typically covers in more detail.

How Much Does Landlord Insurance Cost?

The cost depends on numerous factors. Your policy cost will depend on, for example:

  • The size of your property
  • The property’s location
  • Any relevant deductibles
  • Whether you choose additional coverage
  • Your past claims history

What’s crucial is that your policy covers the costs of repairing or replacing damage, at a budget that suits you. Shop around and explore the various types of insurance policies available before choosing a plan.

Get Landlord Insurance

Do you need landlord insurance in Glastonbury, CT? Get a quote from Adion Financial. We’ll help you choose the right type of coverage for your property. And we’ll provide the most competitive quotes available.

To learn more about landlord insurance, and to explore your options, contact our team. Call our office or request a quote online!

Would you like us to review your policies?

Are you ready to save time, aggravation, and money? The team at Adion Financial is here and ready to make the process as painless as possible. We look forward to meeting you!

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