Owning rental properties comes with a variety of risks that can cause significant financial damages if you don’t have the right insurance. Landlord insurance helps property owners protect themselves and their properties against these risks and mitigate any financial damages that may be incurred after a covered incident.
At KSA Insurance, we work with landlords and property owners in South Carolina and across the southeastern United States to help them find affordable insurance properties that protect them against a variety of common risk factors.
To help you better understand how you can protect yourself as a property owner, here’s a closer look at what landlord insurance is, what it covers, and what your options are.
Who Needs Landlord Insurance?
If you own property that you rent out to others, you need landlord insurance to protect yourself and your assets. Homeowners insurance only covers your primary residence, meaning it does not cover any damages or liability issues caused by renting your property out to tenants.
Tenants may not be held personally liable for personal injuries, appliance malfunctions, or other common risks, depending on the circumstances. As a landlord, you are responsible for the property’s structure and appliances, and you may be held liable for injuries that occur on the property if it is determined that they were caused by your negligence. Landlord insurance can provide legal and financial protection in the event that you incur damages due to a covered incident.
What Does Landlord Insurance Cover?
Most comprehensive landlord insurance policies contain a few key coverages to protect you and your property against common risks.
These coverages include:
- Dwelling coverage: Helps cover expenses if the rental property’s structure is damaged by lightning, wind, fire, or another covered event.
- Other structures: Other structures include coverage for structures that are not attached to the property’s main structure, including sheds and detached garages.
- Personal property: Personal property coverage includes protection for your personal property that is used to maintain or service the rental property, like lawn maintenance equipment, for example.
- Liability protection: Liability coverage helps protect landlords when a tenant or guest is injured on the rental property due to the landlord’s negligence.
Specific coverages may vary depending on your policy, so be sure to review your policy to better understand what incidents you are and are not protected against.
Additional Coverages for Landlords
Depending on your unique circumstances, you may consider adding additional coverages to your insurance policy to provide more comprehensive protection.
Common landlord insurance riders include:
- Flood insurance: Flood insurance helps cover damages caused by floods. This coverage is generally not included in landlord insurance and may be necessary depending on the location of your property.
- Burglary: Helps cover the replacement cost of items that are stolen from your rental property after a break-in.
- Vandalism: If your property is vandalized, this will help cover expenses related to repairing the damages.
- Guaranteed income insurance: This covers landlords in the event that a tenant either does not pay rent or pays less than they owe.
- Lost rental income: Lost rental income may or may not be included in your landlord insurance policy and helps replace lost income when your property becomes uninhabitable due to a covered event.
Talk to your insurance agent to learn more about what optional coverages are available to you.
What is Not Covered?
While landlord insurance does protect against a number of common risks and incidents, it typically does not cover:
- Tenants’ personal belongings
- Certain perils like floods
- Shared properties
- Landlords’ personal belongings that are not used to service or maintain the property
- Equipment breakdowns and basic maintenance
It’s important to review your policy to understand what is not covered so you can better protect yourself against potential damages.
How Much Does Landlord Insurance Cost?
Like homeowners insurance, landlord insurance costs vary depending on a variety of important factors.
These factors include:
- Property location
- Property age
- Property features
- Claims history
- Safety features
- And more
Landlord insurance is typically more costly than homeowners insurance due to the added risks of renting out a property. Updating your home’s features and adding new appliances are two ways landlords can reduce their insurance premiums.
When shopping for landlord insurance policies, be sure to ask about potential discounts, like bundle discounts for purchasing homeowners and landlord insurance from the same provider.
Request a Quote
Landlord insurance is essential for any property owner that rents out their property. It provides important coverage against common risk factors that would otherwise cause significant financial damages.
Contact KSA Insurance today to get a custom quote and learn more about your landlord insurance coverage options.