What is Landlord Insurance and Why Do You Need It?

As a landlord, one of the most important things you can do is ensure that you and your real estate investment are protected in the event of unforeseen circumstances.

Many new landlords are unaware that traditional homeowners insurance is not sufficient for non-owner-occupied properties. Landlord insurance is the solution that rental property owners need in order to be covered for liability and property damage for a tenant-occupied investment property.

What does landlord insurance cover?

Landlord insurance is a policy that is specifically designed to cover damage to a rental property that the owner themselves does not occupy. Coverages is similar to a homeowners policy and include perils such as fires, burst pipes, flooding, vandalism, some natural disasters, and more. One of the most important coverages for landlords is liability coverage. This provides protection for the landlord in the event that a tenant or guest is injured while on the property and sues. The policy can cover legal fees and/or medical expenses.

Beyond traditional perils, landlord insurance can also cover human perils for vandalism, theft, riot, or civil commotion. Depending on where your property is located, this can be valuable coverage to protect your investment. There are significant advantages to working with a specialized landlord insurance company, like Steadily, that has familiarity with the unique needs of rental property owners.

Get a fast online quote for landlord insurance today from Steadily →

What types of properties does it cover?

Landlord insurance covers all types of rental properties, including single-family homes, apartments or condos, apartment buildings, vacation, and short-term rentals, fix n’ flip properties, and more.

For owners with multiple properties, several dwellings can be covered under one policy.

Many landlord insurance companies will also offer discounts for multiple properties. From single rental properties to large multi-state portfolios, landlord insurance will ensure your investment is protected.

Is landlord insurance a legal requirement?

Landlord insurance is not required by law; however, it will protect you from a catastrophic loss while managing a rental property. If a fire or natural disaster were to occur and you did not have insurance coverage, you would be required to pay for the total cost to rebuild.

The benefit of insurance is not only having peace of mind that you are protected in the case of an emergency, but also that you would only need to pay a small deductible if something were to occur. A deductible is an amount paid out-of-pocket by the policy-holder before the insurance company will initiate payment for repair.

Landlord insurance companies, like Steadily, have created a digital-first experience for landlords that works like the other modern tools that they love. Policies can be bought online, via phone, email, or SMS with coverage as quickly as the next business day.

Additional benefits of landlord insurance

Most insurance companies will recommend having a property management company to oversee a rental property or portfolio. Landlords can receive insurance discounts simply for working with a property management company.

A significant benefit is adding the property management company to the insurance policy as an additional insured. An additional insured on an insurance policy is an individual or company who is covered under the insured’s benefits by the insurance policy. This means that actions conducted by the property manager on behalf of the property are also covered under the policy.

Final Words

Being a rental property owner comes with a number of significant financial considerations, including having the appropriate insurance coverage for your investment. Specialized landlord insurance providers like Steadily make the process fast, easy, and convenient.

Landlords benefit from the peace of mind and coverage in the event of damage to the property, or injury to tenants or guests. Landlords can also receive additional discounts if working with property managers and can include their partners as additional insured on the policy. From one property to larger portfolios, landlord insurance is a wise decision to protect your real estate investment.

Get a fast online quote for landlord insurance today from Steadily →