Landlord insurance serves to protect landlords during circumstances where they are prevented from using their property to earn an income. These circumstances include legal disputes between a landlord and tenant.
If legal expenses are purchased as a part of the insurance coverage, landlords will be compensated for any related legal fees. In cases where the property damaged to the point that it is inhabitable, landlord insurance will help cover the costs to repair the damages as well as compensate the landlord for the loss in rent collected during the rebuilding.
Like all contracts, the precise language of the insurance coverage must be carefully reviewed to understand precisely what is and is not covered. Coverage may be limited to damage of the interior or exterior of the property. Because of the variety of coverage available, landlords are often advised to carefully consider different options before buying an insurance policy.
Comprehensive insurance provides coverage for all types of situations except those specifically excluded. In contrast, peril policies generally cover fewer types of damage and list only those losses that will be covered. Potential policy holders are also often advised by insurance companies to not only consider possible property damages, but also libel, slander and discrimination.
Get a quote
Q: Does landlord insurance cover a loss that a renter might suffer?
No. Landlord insurance is intended to cover a financial loss when a property is unable to earn an income.