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How do I know if I need landlord insurance?

Determining whether you need landlord insurance actually boils down to a simple question: are you planning to rent out your entire property to tenants?

If you answer "yes", then you definitely need landlord insurance. Your homeowners insurance policy typically won't cover situations where your property is occupied by renters, leaving you financially exposed in case of:

  • Property damage: This includes damage from fire, theft, water leaks, storms, or even tenant negligence. Landlord insurance covers repairs and replacements for the building itself.

  • Liability claims: If someone gets injured on your property, is poisoned by lead paint, or suffers any other harm due to its condition, you could be held liable. Landlord insurance provides legal defense and financial compensation in such cases.

  • Loss of rental income: If a covered event makes your property temporarily uninhabitable, landlord insurance can help cover lost rent payments until repairs are complete.

Here are some additional situations where landlord insurance is particularly important:

  • You own multiple rental properties: This increases your risk exposure, making dedicated coverage even more crucial.

  • Your tenants run a home business: This opens up additional liability risks, potentially requiring specialized coverage within your landlord insurance policy.

  • You live off-site from the rental property: This makes it harder to monitor the property and handle emergencies, highlighting the need for comprehensive insurance protection.

Even if you only rent out a room or basement in your own home, you may need a specific type of insurance called renter's insurance. This protects your personal belongings and provides some liability coverage for incidents within your shared living space.

Talk to our insurance agents about landlord insurance if you're planning to rent out your second home, or a room in your home.

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