What Insurance Does a Landlord Need?

10 Sep 2020 Insurance Products

Compared to the average homeowner, landlords face a higher level of risk and need an insurance policy that will properly protect their investment from damage. If you are thinking about renting out a property that you own, knowing what insurance a landlord needs will help ensure that you are properly protecting your property. At Mountainview Insurance, they understand how important it is to have the right kind of insurance. That is why they offer a range of different home insurance policies, including rental property insurance or landlord insurance.

What is Landlord Insurance?

Landlord insurance is specifically designed to provide coverage to homeowners who are renting out their residential property (house, condo, or townhome). Purchasing a comprehensive insurance policy can help protect you from financial losses caused by property damaged due to a fire, break in, or severe weather.

Are Landlords Required to Have Insurance?

While landlords are not required by law to purchase insurance, it is important to keep in mind that most mortgage lenders will require you to purchase insurance before the property can be rented out. In most cases, landlord insurance will cover:

  • Property damage—Covers any damage to the building and personal property caused by fire, theft, natural disaster, vandalism, and tenants.
  • Liability insurance—Protects you in the event that a liability claim or lawsuit is filed against you by someone who was injured on your rental property. Liability insurance will help cover the costs of all bodily injury claims on your property, such as medical bills, funeral costs, legal fees, and settlement costs.
  • Loss of income—Provides compensation for lost income if the rental property becomes uninhabitable due to a covered loss like a fire or natural disaster. This policy helps cover the income that you would have been able to bring in if you were still collecting rent.
  • Optional coverage—Landlords have the option to buy additional insurance coverage, such as natural disaster insurance, rent guarantee insurance, employer liability insurance, and landlord contents insurance.

When renting out your property, make sure to keep in mind that landlord insurance does not provide personal liability protection for tenants and their personal belongings. This means that you should strongly consider requiring tenants to purchase their own tenant insurance policy before signing a lease agreement.

If you would like to learn more about what insurance a landlord needs, or if you are interested in one of their home insurance policies, please contact Mountainview Insurance at 604-557-0255 or by filling out a contact form on the website.