Do you need rental property insurance?

What does rental property insurance cover?

What is covered under standard landlord insurance policy?

• Dwelling Coverage

  Coverage for the main home’s structure

  Dwelling coverage pays for damage to your house and anything permanently attached to it, including your garage, roof, chimneys, attached deck, countertops, cabinets, flooring, vanities, etc. This coverage is not normally provdied for condos rented to others, and is replaced with Interior Coverage.

  Example: A pipe in your kitchen bursts and water damages your walls, cabinets, countertops, appliances, and hardwood floors. This then pays to repair or replace what’s damaged and water removal.

• Personal property

  Covers your belongings if stolen or damaged

  Covered items on your renters policy include furniture, clothes, electronics and more. Plus, your possessions are covered even if they’re in your car, storage unit, or anywhere else away from home (like on vacation). You’re protected against fires, weather and water damage, theft/vandalism, and other incidents listed on your policy.

  Keep in mind, there may be limitations for certain expensive items like jewelry, art, and memorabilia. If necessary, you can easily purchase extra coverage for those valuables, by “scheduling” an item (also known as adding a “rider” to your policy). Get a renters insurance quote and we’ll guide you through your coverage options.

  Example: Someone breaks into your apartment and steals your television. Renters insurance pays to replace the TV.

• Loss of Use

  Covers your temporary living expenses

  If your place is damaged due to a covered loss on your policy and you can’t stay there, loss of use coverage pays for hotel/rent and food expenses above what you’d usually pay.

  Example: There’s a fire at your apartment complex, and you’re forced to live elsewhere for two weeks while the landlord makes repairs. Renters insurance will cover your hotel bill as well as restaurant/food costs over and above what you usually spend on groceries. Keep your receipts so your expenses can be documented.

• Personal liability

  Covers lawsuits if you’re sued

  If you’re liable for someone else’s injuries or property damage, personal liability can cover you up to the limits of your policy.

  Example: You neighbor is badly injured after slipping on your kitchen floor. Personal liability coverage would kick in and pay for your lawyer, court fees, and injuries you’re liable for, up to your policy’s limits.

• Medical Coverage

  Covers injuries at your place

  Medical payments coverage pays for medical bills if someone else is hurt at your residence.

  Example: One of your child’s friends breaks her arm at your place, and her parents ask you to pay the medical bill. Medical payments will cover the bill, up to your policy’s limits.

Rental property insurance specific coverage

• Personal Injury Liability

  Protection from lawsuits unique to landlords

  Personal injury coverage protects you from tenant claims of libel, slander, wrongful eviction, wrongful entry, and invasion of privacy. Such claims are not uncommon among landlords, so it’s best to be prepared.

  Example: If you must evict one of your tenants for a reasonable cause, and they sue you for the eviction, you must respond to the lawsuit even if it’s frivolous. This coverage option helps you defend yourself and your investment in case this happens to you.

Optional landlord insurance coverages

• Water back-up

  Covers water damage from backed-up sump pumps and sewers

  Some homes or condos have sump pumps in their basements or crawl spaces. These are designed to pump water out from underneath and around the foundation. If sump pumps or plumbing/sewer systems get backed up, water can seep into your place and cause an expensive mess. Water back-up coverage can pay for damage to your belongings and water removal.

  Example: The sump pump in your basement breaks down, and water floods the home you’re renting, damaging your carpet, furniture, and more. Your water back-up coverage will pay for the sewage removal and damage to your property.