What Does a Landlord Insurance Policy Cover?

A basic landlord insurance policy offers dwelling coverage for structural damage to the property and fair rental income protection for cases where the tenants have to move out unexpectedly due to a covered loss and you're unable to collect rent during the time that the property is being repaired. A comprehensive policy would include additional protections such as:

• Acts of Nature – hurricanes, earthquakes, lightning strikes, etc.
• Water/Flood Damage – usually a separate policy but can be included in the package
• Personal Property – important if you're renting out a furnished house or apartment, but it also covers window treatments, appliances, carpets, and more
• Legal/Liability/Medical – protects you in the event that you get sued by a tenant or even a contractor working on the property

If you have multiple rental properties or a large property such as an apartment complex, then you may wish to consider investing in an Umbrella or Excess Liability Policy to cover your personal assets in case a liability claim exceeds the coverage limit of your DP-1, DP-2, or DP-3.