What type of insurance coverage do I need?
Landlord Insurance generally covers the units, property and structure itself. What this does not cover are the belongs of the tenants. To insure tenant belongings, the renter would need to buy renters insurance.
There are four standard types of insurance coverage most landlords will need. Liability insurance is one type that all landlords should consider to protect themselves against tenant negligence and possible lawsuits.
General Liability Insurance. A general liability insurance policy covers you against claims made by a third party, such as a tenant or their visitors. These claims could range from negligence to the property, property damage, or an injury to the tenant or visitor on the property due to the negligence of the landlord.
Flood Insurance and Water Damage Insurance. This coverage protects against any sort of water damage except a sewer back-up.
Umbrella Liability Insurance. For most, this is coverage beyond that which a basic liability insurance policy provides. The umbrella insurance takes affect after a basic policy has paid the maximum it will pay. This coverage is for the catastrophic losses where a basic policy becomes insufficient.
Property and Casualty Insurance. A property and casualty policy will provide you with protection against damage to the property from events such as glass breakage, vandalism, fire, smoke, lightening, etc. It will also provide protection against loss of income if the unit becomes inhabitable due to the damaging incident.
