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Landlord Insurance

Multi Family House

You may have several reasons you are considering related to renting out your home.
This may either be on a short term or on a long term basis. In either you should consider if Landlord Insurance is right for you.

Depending on the rental scenario, your standard homeowners policy may not cover losses you incur while your home is rented out.
You may require a more specialized insurance policy to protect your investment from loss.

Whether you own a second home that you lease to tenants, want to rent out a spare bedroom in your house periodically though Airbnb, or make a little extra cash renting out your beach cottage the weeks you’re not using it, the first step should be to contact us.

When the property you own is also a source of income, protecting it against loss is even more important.
You have many coverage options to choose from—some come standard and others are optional additions.

Typically most Landlord policies provide property insurance coverage for physical damage to the structure of the home caused by covered perils. (fire, lightning, wind, hail, ice, snow, etc)
It also offers coverage for any personal property you may leave on-site for maintenance or tenant use, like appliances, lawnmowers, and snow blowers.

The policy may also include liability coverage to protect you in the event that a tenant or one of their guests gets hurt on the property.
The key coverage most landlords seek is loss of rental income during repair or rebuild due to damages suffered from a covered loss.
This key coverage provides specific period support for rental income during covered loss events where rental income is halted due to loss of use.

Here are some of the key policy items of a landlord policy.

  • Dwelling
  • Liability
  • Vandalism Coverage
  • Fair Rental Income
  • Premises Medical Protection
  • Building Code & Ordinance
  • Rental Property under construction
  • Burglary Coverage

You deserve a discount. If you have more than one property insured with some insurers you may receive an additional discount.

Every situation is unique, contact us today to review your coverage options.

Did you know the 10 Commandments of Landlord Insurance?

  1. Thou Shalt Always Require (Unless Prohibited by Law or Ordinance)
    1. Renters Insurance
      1. With at least 500K of liability coverage
      2. Be listed as additionally insured
  2. Thou Shalt Never:
    1. Allow a pool of any kind to be installed on or within the dwelling
    2. Allow a trampoline or other like device to be installed or exist on the dwelling property
    3. Allow these items to be excluded from your lease agreements
  3. Thou shalt always insure to the Replacement Cost of the property.
    1. ACV values on properties without debt obligations can be replaced for stated value in some markets.
    2. ACV is your enemy in areas of high build costs.
    3. ACV is not your savior in coastal, or high risk areas.
  4. Thou shalt always require a Contractors proof of insurance.
    1. This must be sent from their insurer, or broker directly to you
    2. This includes General Liability AND Workers Compensation policies.
    3. This may also include any excess liability policies for high loss jobs..
  5. Thou shalt always place each property in a separate legal entity where possible.
    1. If you are okay with the additional administrative burden.
    2. If you are okay with the additional potential tax burden.
  6. Thou shalt know which umbrella will work.
    1. A personal Umbrella WILL NOT protect a commercial Exposure
    2. Any agent/broker unwilling to find Umbrella coverage with a CGL/Landlord policy should be questioned closely.
  7. Thou shalt know the difference between Replacement Cost and Market Value.
  8. Thou shalt insure commercial exposure with commercial insurance.
    1. 3+ Units = Commercial Risk
    2. Commercial Insurance may be tax deductible
  9. Thou shalt not use insurance like a product or service that can be purchased at a discount store.
    1. Flood:
      1. Purchase adequate flood coverage to protect building mechanicals
      2. Purchase flood coverage based on the ACTUAL flood data from FEMA for the property location
      3. DO NOT THINK YOU WILL AVOID A FLOOD EVENT FOREVER.
    2. Co-Insurance
      1. You MUST watch your co-insurance amounts and ensure that properties are insured to the appropriate limits.
    3. Air-BnB
      1. You must carry adequate coverage to protect you from liability claims that result from the use of shared dwelling services.
    4. Pollution
      1. You must carry insurance that protects you against the actions of tenants especially with regards to claims of pollution.
  10. Thou shalt know vacancy exclusions and where needed purchase vacancy coverage where available.