What Does Landlord Insurance Cover?

If you are a person that is renting out buildings for people to live in, then you are going to want to have landlord insurance. So what is landlord coverage? Normally, landlord insurance is a policy that covers the property owner from having a financial loss if something is to happen to their property while someone else is living there. Most of the time, landlord insurance just covers the building itself. However, there are some cases where landlord insurance may cover more than that. Today we are going to go over what landlord insurance actually does cover. While we go over this, it's a good idea to keep in mind that this is all going to depend on your policy. Just like car insurance, you can choose to cover some things and not others.

Before we get into what landlord insurance covers, you need to keep one thing in mind. That is the fact that you do not just want to go with the cheapest insurance that you can find to save money. If you do that, then you might actually be costing yourself money if something goes wrong. After all, paying just a little bit of money each month to cover your insurance is just money down the drain if it's not going to do much to protect your building if something actually does happen. Thus, be sure you read your policy to make sure that you know just what your insurance is going to cover and what it is not.

Now that we got that out of the way, what does most landlord insurance cover? For the most part, a standard policy will cover things like fire, flood, and storm. Some other policies, depending on where you live, will also include things like explosion, earthquake and, of course, lighting. Some policies even go a little bit further outside the box. For example, let's say that you live next to a dam that breaks open. Not every policy will treat that like a flood. In some polices, this is known as escape of water. Some polices cover escape of water and oil. Other things that you may want covered are theft, subsidence, and then, of course, malicious damage. Remember that each policy is different and may not include all of this. Some will include all of this, but for a higher price than other companies.

You can also choose if you want your landlord insurance to just cover the building or things inside the building. Of course, it is not going to cover your renters' things, but it will cover the things that you leave inside the building. For example, sometimes when you rent a place, it comes with a oven, stove, ice box, and things like that. If there is a fire in the building, then you want that kind of stuff replaced. Thus, a lot of people choose to have the inside stuff covered as well.