Landlords face several risks associated with rental property. This is why landlord insurance is recommended for anyone who earns a living by renting out property to tenants. If you rent out homes, apartments, or condominiums on an ongoing basis, then this insurance is for you.
This coverage is important because it covers damage to the property and items on the property that belong to the landlord. It also provides protection against legal liability and loss of income. You need this protection as a landlord because otherwise you risk losing your personal assets.
Property damage protection is for the main building and associated structures, such as a shed. This also applies to items used to service the property, such as a lawn mower. The insurance will repair or replaces items when losses are caused by fire, theft, storms, and vandalism. It also covers damages caused by tenants.
Liability protection is important as well. If a tenant or visitor is injured on your property and files a lawsuit, you could have to pay their medical bills and legal expenses. The insurance company will shoulder much of the risk if you have landlord insurance.
This type of policy also covers you for loss of rental income. If the property becomes uninhabitable because of something like a fire, then the policy will compensate you for the lost income.
Some items are not covered by this insurance. Most notable, tenant belongings are not covered. Although their belongings are on the property, they would need renters insurance to cover their assets.
Any landlord should have landlords insurance to protect their assets.