Landlord insurance enables the building owner to be properly protected from the costs of property damages and various other financial risks. This kind of insurance policy covers the building and often furniture and other items they own within. A property owner, no matter how careful they think they’re being, cannot guarantee that no accidents or costly events will happen, such as flooding or someone being injured on the property. Insurance is a necessity for any owner who administers a residential or commercial building with tenants, whether it be single family homes, condos or apartment buildings.
Nature can be the cause of great damage, such as that inflicted by wildfires, severe storms and even tornadoes. Human-caused damage is just as costly and possible. Fire is the most usual form of destruction in this case. Fires can blow through an apartment building in no time flat and destroy everything within. Fires can be accidentally set by smokers, or via items catching fire near a heat source in the unit. There is also the possibility of gas leaks that can lead to explosions or simply sicken those within.
A good landlord insurance plan also covers theft, vandalism and even acts of terrorism. No matter if it is a tenant or a trespasser who inflicts damage, this is all protected under the proper policy. Another option helps losses due to missing or late rent payments. Landlords can also benefit from loss-of-income coverage, which compensates for lost rental income should the property become uninhabitable.
An owner will often benefit greatly from liability coverage for any accident that might occur on the property. The most usual type is a slip and fall accident that is the result of some supposed property defect. Anyone who walks into a badly maintained building can easily have an accident, but with the proper policy coverage, the landlord can be protected from litigation, frivolous or otherwise.
There is also multi-property insurance that offers coverage for the landlord who owns more than one property.
Landlord insurance is specifically designed for landlords, not for tenants. Generally, a tenant should buy their own renters insurance.