If you own rental property, then you need landlord insurance. This is for people who rent to tenants living in condos, homes, or apartment buildings. To qualify, you must continuously rent space to tenants. This coverage will cover you in the event of certain financial risks.
Landlord insurance provides coverage for the property. If damage occurs to the main building or additional structures on the property, then insurance will help with repairs. Damages due to fire, storms, theft, vandalism, or tenants are covered. Associated items are covered as well, and include items related to the upkeep of the property. Legal liability provides assistance when a tenant or visitor is injured on the property. They could sue you, and the insurance would help with the legalities. Loss of income coverage is helpful as well, should the rental property become uninhabitable.
The insurance for landlords does not cover tenant’s property. Their personal property is not your responsibility. Your personal property inside the building is not covered either, but it is possible to purchase add-on insurance that will. You might want to inform tenants about renter’s insurance, which is what they would need.
Your homeowner’s policy might be sufficient if you are renting one home, perhaps short-term. But if you are renting to tenants on a long-term basis, landlord insurance is definitely worth having.