NYC Insurance Blog

What is Rental Property Insurance?

Rental property insurance, also known as landlord insurance, covers any risks associated with renting your property, i.e., condominium, apartment home, etc. The policy provides financial protection in case someone is injured on your property, or the property is damaged. It is essential to understand that depending on the policy you purchase, landlord insurance can protect your rental property income if your property is uninhabitable due to a covered event or peril. 

What Does Landlord Insurance Cover?

• Dwelling coverage, i.e., coverage to any physical damage to the building caused by a risk listed in your policy, for example, wind or fire. 
• Liability coverage – protects you financially if you are sued for property damage or medical bills related to your rental property. Liability coverage also pays for any legal costs up to the limits of the coverage. 
• Personal property – if you own property for your tenants to use, for example, lawnmowers, rental property insurance can provide coverage. 
• Loss of rental income – if you cannot rent your property for some time because of an event included in your policy, the lost rental income can be recovered. 

What Does Landlord Insurance Not Cover?

• Tenant’s personal property – if your tenant’s personal property is stolen or damaged, rental property insurance does not provide coverage. Tenants should purchase renters insurance to protect their personal items. 
• Maintenance/equipment failure – with time, equipment breaks down, and you need to repair or replace the equipment as a landlord. Landlord insurance does not cover repairs or replacement costs. Therefore, you will have to pay out of pocket. 
• Shared property – if you share your apartment or condo, landlord insurance will not cover any perils. For example, landlord insurance will not cover the property if you rent out a spare bedroom. You cannot occupy the property and purchase rental property insurance as a property owner!
• Flood or earthquake damage – these perils are not covered by landlord insurance. Instead, you should purchase separate insurance policies to cover these risks, especially if you are in areas prone to such natural disasters.

If you rent out your property for long periods, for example, a few months or years, you must purchase rental property insurance to protect yourself against any financial losses. However, if you rent out your primary residence occasionally, you may not need to purchase landlord insurance.

Your homeowner’s insurance can provide coverage. If unsure, talk to your homeowner’s insurance provider to avoid potential financial losses while you thought you were covered. Give us a Call today to get a FREE Lanlord Quote.

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