Landlord insurance is the same as rental property insurance, and it protects landlords against property damage. This includes fires, lightening and certain natural disasters. The policies usually cover the main building and attached structures, including decks, and one or more outbuildings, including garages. Personal property belonging to the landlord is also covered, including furniture and lawn care tools on the premises. These policies do not cover property that belongs to tenants.
Any rental property is eligible for landlord insurance. Landlords can insure properties they own and are renting or intend to rent. This includes vacation rental properties, single family homes, duplexes and row homes. If a rental property is old or needs minor repairs, they can also be covered under this type of policy.
Comprehensive rental property insurance replaces or repairs property damaged accidentally or by fire, theft, vandalism or natural disasters. Named peril covers damage and property loss from specifically named accidents and weather conditions. Liability coverage is protection if an individual gets hurt on the property and sues the landlord, and the landlord is found to be at-fault.
Landlords have several settlement options, but it depends on the degree of loss. Payout options include total loss and partial loss. A total loss is when the property is completely destroyed. The landlord receives a payout in the amount of the policy excluding deductibles.
Partial loss occurs when the property is not completely destroyed. The landlord receives a payout in the amount of the estimated repairs minus deductibles and depreciation.
Landlords can also purchase replacement cost insurance. This coverage helps replace destroyed property with similar property.