There are plenty of tasks to manage when you want to rent out a property, but one of the most important is getting the right insurance coverage. Before you start listing that home, make sure you understand landlord insurance, which offers vital protection for both the property and your overall financial wellbeing.
Landlord insurance is a specialized policy that takes into account the unique needs of property owners who are renting out their properties to others. In addition to the standard risks associated with homeownership, there are some additional risks that must be considered, and some coverages that change to fit the property owners' needs.
Orion180 DP Landlord provides flexible protection for landlords, including hard‑to‑find coverage for weekly and monthly rental terms, as well as options for annual agreements.
Why isn’t home insurance used for rental properties?
A person who owns several properties may have a combination of home insurance and landlord insurance policies, and may change the policy for a specific property over time. When choosing which type of policy is needed, the key distinction is occupancy.
Homes that are owner occupied would typically have a home insurance policy, and those that are rented out to a tenant would have a landlord insurance policy. This is an important distinction because the property owner has more control and more visibility over a home they live in than one they rent out.
How is landlord insurance different than home insurance?
Landlord insurance offers some similar protections to home insurance, but the focus and intent are different. Home insurance is designed for owner‑occupied properties, while landlord insurance is built to protect the property itself and the financial interests of the property owner.
For instance, home insurance typically covers all of the homeowner’s personal belongings, electronics, furniture, clothing, and more. Landlord insurance covers only the landlord’s items that remain in the rental, such as appliances or provided furnishings. Tenants’ belongings are not covered and require a separate renters insurance policy.
Home insurance usually includes loss of use coverage, which pays for the homeowner’s living expenses if the home becomes uninhabitable. In a rental situation, a landlord policy includes loss of rental income coverage, reimbursing the property owner for rent they cannot collect while the property is being repaired.
Landlord insurance also includes liability protection that centers on risks associated with the rental property itself, rather than the personal liability coverage provided by traditional home insurance.
What are the differences between landlord insurance policies?
There are many different landlord insurance policies available to property owners. One of the biggest differences you’ll discover is the amount of customization available. Some policies are very rigid with limited opportunities to shape the coverage to your needs, and limited flexibility in deductibles and other factors that affect your premium.
Today, there are growing opportunities to get a policy that fits your exact needs. Savvy property owners can find policies that allow them to get the coverage they need and drop what they don’t. They can also select from a wide range of deductibles to balance cost and risk. Look for a policy that offers you choice.
Do You Need Landlord Insurance?
If you’re renting out a property, landlord insurance is the appropriate policy. Even if you once lived in the home and carried a home insurance policy, you should contact your agent to review your coverage as soon as it becomes a rental. Using the wrong policy can result in denied claims, particularly for liability issues or loss of rental income.
Connect with an agent to learn more about landlord insurance, and the specific considerations for your property!
This information is meant to help you understand DP Landlord Insurance, but your actual coverage will depend on the specific terms and details in your insurance contract. For questions about your exact coverage, it’s always best to review your policy or speak with your insurance agent.
