Buying Landlord Insurance
If you are a landlord or interested in becoming one, you will need to purchase landlord insurance. This coverage may or may not be a legal requirement in your state. But it is great protection during financial and legal issues that landlords sometimes face.
Do Landlords Really Need Coverage?
Rental property is a business. You cannot use traditional homeowners insurance for an apartment building, office building, or condo. From the moment you rent to a tenant, only a policy specifically for landlords will cover damage, theft, and vandalism that occur on the property. Landlord insurance is a business expense, so you should be tax deductible.
These policies are more complicated than regular homeowner’s coverage. This is because a landlord has a different set of issues that most homeowners. Also, this policy does not cover your tenant’s private possessions. What is covered includes damage to the building, mechanical systems, and possessions that you have in the building. That can include light fixtures, window shutters, and appliances.
You might also want to make sure your landlord insurance policy includes liability. This protects you and your assets during a lawsuit. If the lawsuit goes to trial and you have to pay, then the policy will help with some expenses.