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Landlord Insurance

What is a Landlord Policy?

Landlord Insurance AlabamaYou might think of this policy as homeowners insurance for landlords. As with homeowners insurance, your policy will cover the structure itself, in the event that it is damaged by any number of causes, such as storms, fire or malicious acts. The policy will also typically provide liability protection to cover injuries to anyone on the premises in the event that these injuries are deemed to be your fault or the result of negligence on your part.

A basic landlord insurance policy will typically include:
  • Property damage: This covers damage to your building(s) due to fire, storm damage, theft, vandalism and tenant damage. Ideally, your landlord insurance will cover the replacement costs for your entire rental property in the event of a total loss. Your property damage coverage has limits, so be sure you are aware of what they are. Also, remember that you will need to pay a deductible before you’ll get any reimbursement from your insurer.
  • Liability insurance: This coverage protects you against liability claims and lawsuits. Whether a tenant, visitor or even a trespasser is injured on your rental property, you could find yourself in a legal mess. Your liability insurance will help you cover the costs associated with bodily injury claims on your property. These costs can include medical payments, funeral costs, legal fees and judgment or settlement costs.Here are some explanations of landlord liability insurance:
      • 1. As the landlord, you are found responsible for another person’s property damage. For example, if you neglect to fix a leaking water pipe and mold damage destroys a tenant’s expensive collection of vintage albums, a liability claim can be filed against you by the tenant.
      • 2. A visitor comes to your rental property and is injured in a fall. If that visitor fell because he tripped over his own shoelaces, you shouldn’t have a liability claim on your hands. If the visitor is staying with one of your tenants and falls in the shower, you also will likely not be held responsible. That incident would potentially fall under the renter’s liability insurance.
      • 3. If the visitor tripped due to negligence on your part, such as broken steps on a stairway, you may have a liability claim on your hands. In this case, the visitor could file a claim against your insurance policy to cover the costs of medical care. If the injury is severe or the negligence considered egregious, the visitor may file a lawsuit against you. Your landlord insurance can cover your costs up to the limits on your policy.
    • Loss of income: This insurance will help compensate you for lost income during repairs if your rental property becomes uninhabitable due to a covered loss, such as a storm or apartment fire. Your loss of income coverage, or “rental reimbursement,” will prevent you from losing the income you would have had if you were collecting rent.

What About Contents Coverage?

One main difference between home insurance and landlord insurance is that you typically do not need to insure personal property such as clothes and jewelry. Your tenants are responsible for insuring their own belongings with renters insurance, so your coverage does not need to include personal property insurance, unless you need to cover tools and other items associated with your property maintenance.

If, however, you are leasing a furnished home or apartment, you will need to purchase contents coverage for the belongings you own in the leased space.

Now that you have a better understanding of why you need landlord insurance, call Hughes Insurance Services of Alabama today for your free no obligation landlord insurance quote.

Hughes Insurance Services Of Alabama

Contact Us:

400 Century Park South
Suite 106
Birmingham, Alabama 35226
(205) 822-6778
(205) 417-1444

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