Insuring your Rental Property

Whether you are a landlord or a rental property owner you want to protect your investment as you efficiently run your business. Rental property insurance, commonly known as landlord insurance, protects you from the risks of renting your rental property and injuries that may occur on the premises. Common types of homes often used as rental properties range from apartments, duplexes, condominiums, single or multi-family homes that a person may own and rent out to others.


What type of insurance do I need? Liability Coverage: Provides coverage for incidents where the landlord is found liable or responsible.

Property / Dwelling Coverage: Coverage for your rental home and any attached structure when it is damage by theft, water damage, fire, lightning, wind, vandalism, or other covered losses.

Other Structures: Covers structures on your property that are not attached to your rental home, such as detached garaged, shed, or pole barn.

Income / Loss of Rents: Covers your loss of rental income when the dwelling cannot be rented due to a covered loss.


Additional Coverages:

Water Backup of Sewer or Drains: Coverage for water backup when sewers or drains overflow and cause damage to floors, walls, furniture, and electrical systems.


Personal Property Coverage: Coverage for your personal property in the rental home.


Equipment Breakdown: To repair or replace equipment such as heating or cooling equipment.


Ordinance or Law Coverage: Covers increased costs of complying with building codes which regulate construction and repair of damaged buildings after a covered loss.


Other things to consider when renting out a home or property will be to talk to the tenant about acquiring renters’ insurance policy which will protect the renter’s possessions. In addition, having you listed as an additional insured on their renter’s insurance policy can help extend liability coverage to you if something happens and could help with repairs to the damage in your home caused by the tenant.


On the other hand, if you choose to rent your primary home or seasonal home as an Airbnb or Short-Term Rental, it would be best to reach out to your independent agent to see what coverage your homeowner’s insurance will extend to the short-term rental and what coverages will be excluded. Some insurance carriers may not be in the market to insure these types of rentals while others may be able to add a special insurance rider or endorsement.


Sources: Acuity Insurance Erie Insurance