LANDLORD LIABILITY INSURANCE

We want you to focus on building your investment property portfolio instead of worrying about insurance coverage and risk management. As a result, we take our time understanding the individual circumstances of your rentals and tenants to ensure your landlord insurance coverage includes the following advantages:

LEGAL EXPENSES: Includes eviction costs, tenant injury liability coverage, judgments from tenant-caused damage, and other qualified risks.

MEDICAL COSTS: Provides medical payments for tenant or guest injuries on your property and other eligible occurrences.

WRONGFUL EVICTION COVERAGE: Covers legal fees and potential damages if a tenant sues for alleged improper eviction.

PROPERTY LIABILITY INSURANCE: Mitigates losses from tenant-caused damage, weather events, vandalism, flooding, plumbing issues, fires, and other individualized circumstances.

LOSS OF RENTAL INCOME: Offsets income gaps due to difficult economic conditions on behalf of a tenant or if a rental becomes uninhabitable.

Our team can work with you to create the best investment property insurance customized to your property and its associated risks, elevating your financial future while providing peace of mind.

Schedule a complimentary consultation to discuss your needs.

LANDLORD INSURANCE COVERAGE FAQ

WHAT IS LANDLORD INSURANCE?

Rental property protection is similar to other liability policies. However, it goes beyond traditional homeowners insurance plans by addressing investment property owners’ unique challenges with tenants and non-human related liabilities.

In this case, one of our insurance experts partners with you to discuss your rental portfolio, its risks, tenant needs, and other details to create a landlord liability benefits plan to mitigate unexpected financial losses based on your circumstances.  

WHAT DOES LANDLORD INSURANCE COVER?

With the rise of tenant lawsuits and climate catastrophes, this affordable solution has become more crucial than ever, whether you’re renting a single home or multiple apartments and buildings. 

Landlord liability insurance generally covers:

• Damage to a rental property from fire, storms, plumbing, vandalism, natural disasters, and other insured risks.
• Liability protection against lawsuits if a tenant or guest is injured on your property.
• Compensation for lost rent if the property becomes uninhabitable during a covered event.
• Costs associated with tenant disputes or evictions.
• Landlord-owned items used to service the rental (e.g., appliances, maintenance equipment, and more).
• Dwelling protection that insures the physical structure of the rental property, plus additional structure coverage for garages and fences.

Our landlord insurance experts are here to explain how to handle individualized risk and use that information to ensure your coverage addresses your unique circumstances.

WHAT DOES LANDLORD INSURANCE NOT COVER?

While this type of policy offers perks like compensation for lost rent under covered circumstances and additional reimbursements for qualified liabilities, the following examples often don’t fall within the purview of a landlord insurance plan.

Landlord liability insurance generally does not cover the following:

• Tenant property damage from fire, flood, or theft—these instances often fall under renters’ insurance.
• Regular maintenance: fixing leaky faucets, replacing worn carpeting, or repainting.
• Pest infestations, such as termites, bed bugs, and rodents.
• Earthquake damage and certain flooding events may require additional coverage.
• Intentional damage caused by you or your property management team.
• Appliance breakdowns due to normal wear and tear.
• Loss of rental income due to vacancies. 
• Some legal expenses unrelated to bodily injury or property damage claims, such as eviction proceedings or contract disputes, may require additional insurance.

WHAT ADDITIONAL INSURANCE DO I NEED AS A LANDLORD?

Closing gaps in coverage is a primary benefit of partnering with an experienced team. As a result, we may recommend other types of rental property insurance based on your risk assessment and budget. Those endorsements may include: 

UMBRELLA LIABILITY INSURANCE

This extends coverage beyond your standard liability limits for major lawsuits. For instance, if a tenant injures themselves on your property and it results in a $250,000 lawsuit, but your base landlord policy only covers $175,000, umbrella insurance may reimburse you for the remaining $75,000.

What’s more, umbrella insurance is particularly beneficial for landlords with multiple units and larger portfolios.

FLOOD INSURANCE

We often recommend more protection for properties in flood-prone areas and circumstances, not covered by a standard policy, should the need surface during a risk assessment. Here, you’re protecting your investment against water damage not covered by a landlord policy. 

Additionally, we can assess if you qualify for the National Flood Insurance Program (NFIP), a lower deductible, and offer a rider that addresses your investment property’s flooding risks.

EARTHQUAKE INSURANCE

Whether you live among the Cascades, the San Andreas Fault, or in another community, we may recommend affordable earthquake insurance to mitigate the financial risks of renting in a seismically active area. In this case, you may receive financial support for expensive repairs like damaged roofing, plumbing, walls, and other catastrophic structural conditions.

TENANT DEFAULT INSURANCE

We always recommend a plan should you encounter a tenant who fails to pay rent or breaches the lease agreement. This solution allows you to navigate the eviction process while covering qualified legal expenses under an agreed-upon timeline stipulated by the underwriting. 

VACANT PROPERTY INSURANCE 

Even the most business-savvy landlords find themselves between tenants, causing a temporary vacancy while exposing your investment property to certain risks. This add-on helps protect your investment from risks like vandalism, theft, and weather-related damage while the unit is uninhabited. 

ADDITIONAL LEGAL EXPENSE COVERAGE

More landlords are requesting additional landlord liability coverage that fortifies their financial future should they encounter complex evictions and costly legal fees. 

For landlords facing a complex eviction that could cost $5,000-$10,000 in legal fees, this endorsement typically covers attorney fees, court costs, and legal proceedings related to evictions, lease disputes, property damage claims, and more. 

IS LANDLORD INSURANCE REQUIRED?

Landlord insurance is often required by mortgage lenders to protect their investment, much like with a personal home. While some communities don’t legally mandate it, landlord insurance is crucial for covering tenant-related risks, property damage, liability, and loss of rental income. Having this coverage allows landlords to focus on managing their properties with peace of mind, knowing they’re protected from unforeseen issues.

CAN I USE MY HOMEOWNERS’ INSURANCE POLICY FOR MY RENTAL?

Unfortunately, no. Unlike homeowners insurance, landlord insurance is specifically designed for rental properties.

Keep in mind that to receive benefits like loss of rental income and other protections, you’ll need to get landlord insurance if you decide to transition your primary residence into a rental property.

HOW DO I GET THE BEST RATE ON LANDLORD INSURANCE?

Partnering with a team specializing in rental property protection that can meet with you and perform a personalized risk assessment yields the best premiums and savings. 

If you wish to discover the difference that partnering with the right insurance team can make in terms of coverage and rates, let’s discuss your options. 

Contact us today to receive a custom quote based on your rental portfolio, and we’ll get to work securing you the best options at the lowest rates.