Importance of Landlord Insurance If You Rent Out Your Home

Renting out your home to someone can be a great way to earn extra money, especially if the property would otherwise sit vacant. However, while the prospect of a rental may seem straightforward, it’s not without pitfalls. If you’re considering renting out your home, think about retaining landlord insurance.

What Is Landlord Insurance?

Landlord insurance, sometimes known as rental property insurance, can help protect your property and assets from claims related to the home you’re renting out. Unlike homeowners insurance, this coverage is designed for rental properties you do not reside in.

Commonly, landlord insurance can help protect the following aspects:

• Dwelling coverage may help pay for damage to the structure of the rental property.

• Other structures coverage may help pay for unattached structures, such as detached garages.

• Personal property coverage may help cover equipment left onsite for tenants to use, such as a lawnmower.

• Liability coverage may help cover instances where a tenant becomes injured on the property and the landlord is found liable.

Coverage options can vary by insurer, but additional policies may also help cover flooding, vandalism and costs related to mandatory upgrades required by building code changes. Speak with your Fitzwilliam Insurance Services representative to learn more about these and other types of coverage relevant to your property.

Do I Need It?

Landlord insurance can be a wise investment in most situations. Determining specific coverages and policy limits will depend on the property type, value and other factors. If the property has a mortgage, the lender may require specific coverage.

In certain rental situations, landlord insurance may not be the right fit. Specifically, if you still reside in the home you’re renting, homeowners insurance and related coverage often apply.

Ultimately, Fitzwilliam Insurance Services is here to help assess your unique circumstances and recommend proper coverage. Contact us today to learn more about your landlord insurance options.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.