Landlord Liability Insurance

If you are planning to sojourn into a business that involves being a landlord, you want to make sure that you are starting on the right path. 

Or, if you are already a landlord, you might want to assess if your property has the right coverage. No matter which case fits you, being a landlord has many financial risks. 

Landlord liability insurance is essential since it protects your property if it gets damaged by a tenant or accident. But there are many types of coverage and costs to consider. 

What’s the best landlord liability insurance for your business?

You can contact an insurance specialist to have all your questions answered for free. We will research potential policy options and costs to protect you from unforeseen lawsuits and issues. 

Or you can read on to learn everything you should know about landlord liability insurance and landlord insurance policies. 

What Is Landlord Liability Insurance?

Landlord Insurance

Landlord liability insurance, often referred to simply as liability coverage, is an insurance plan specifically tailored for rental property owners. 

As its name suggests, landlord liability insurance is not intended to protect primary residences but is for properties leased out by homeowners. 

Landlords insurance is your safety net against any financial damages you might experience in case a visitor or resident attempts to sue you for damages. These damages can come in different forms. It can be a financial problem, emotional offense, physical injury, or even worse, death.

What Does Landlord Liability Insurance Cover?

Landlord insurance protects you in case of legal expenses and expensive medical fees. There are many types of legal claims, including falls and slips. Due to this, the coverage will shoulder the expenses that come with your legal defense.

Managing a rental property goes beyond giving your tenants the key to their rental unit. You must incorporate maintenance and safety measures on the rental property and add reliable security systems all over your premises. 

However, despite this investment to protect your residents and their personal property, some incidents can’t be avoided. 

Here are several examples of situations that you should look out for:

  • A resident accidentally falls on a cheap jack sidewalk
  • The staircase railing gives up, dispatching a tenant on the ground floor on their back
  • A thief manages to sneak in since the locks installed were all bargain-basement
  • Black mold is appearing all over the property, and guests are suffering from serious medical conditions
  • A guest is forced to leave their unit without due process
  • A resident wasn’t allowed to rent, sues you undergrounds of discrimination

Since liability situations come in many forms, most unforeseen, the need to get proper coverage is highly recommended. Landlord insurance will protect you from whatever claim your guest or tenant will throw at you by virtue of their renter insurance. Pro tip: make sure you upgrade your coverage by improving your landlord liability policy via an umbrella policy. You can also ask about covered loss and other homeowner’s protection clauses.

Liability landlord insurance coverage includes: 

  • Property Damage: This policy is useful in case of a natural disaster, fire, earthquake, vandalism, or irresponsible tenants.
  • Lost Rental Income: In case something happens to your property and it becomes uninhabitable, this policy provides temporary rental reimbursement that covers the rent money you would receive if you had tenants. 
  • Liability Protection: This policy covers the medical and legal costs in case a tenant or their visitors suffer an injury due to a property maintenance problem (for example, an icy walkway). 

Additional Landlord Liability Coverage

There are several additional types of landlord liability coverage that come along with this policy, including:

  • Guaranteed Income Insurance: This policy covers the landlord if the tenant doesn’t have enough money for the rent for one month.
  • Flood Insurance: Many property owners’ liability insurance policies don’t include flood damage related to natural disasters. That’s why flood insurance could be worth adding in case your property is in a zone prone to flooding. 
  • Emergency Coverage: This policy covers the costs that landlords had to resolve the issues of their tenants. 
  • Additional Construction Expenses: The policy cover expenses caused by having to bring a building up to code after it was damaged. 

What Doesn’t Landlord Insurance Cover?

Usually, the landlord insurance policy doesn’t cover:

  • Personal possessions of your tenants (such as clothes and electronics)
  • Run-of-the-mill expenses (such as unblocking a sink or lawn mowing services) 
  • Pre-existing damage to your property
  • Loss or damage caused by flood

Renter’s Insurance vs Liability Insurance

As a landlord, you might want your tenants to invest in renter’s insurance as a contingency in the lease agreement – though it is not legally required. 

Landlords insurance will help you guarantee that if something bad happens, it will instantly be addressed. But what really falls under the responsibility of the landlord and the tenants? Actually, this aspect is pretty complicated. 

Here are several examples:

  • Dog Bite – when a dog bites a guest, they can sue the landlord for medical damages, emotional torment, and many other reasons. However, when the lease agreement states that no dogs more than 10 pounds are allowed, the responsibility will be transferred to the tenant.
  • Fight – if a tenant is attacked by someone that lives in the building, the fault would fall on the person who assaulted the tenant, right? Wrong. The landlord would be blamed if the locks to the unit’s main door are low-quality.

Read more: Contingent Liability Insurance

Landlord Insurance: Is It Legally Required?

If you have a loan, landlord insurance may be required. But if you don’t, then it’s not mandatory. No law requires liability insurance for property owners to get this insurance. The benefits of having insurance offer enough reasons to purchase it.

What Is the Cost of Landlords Insurance?

Landlord Insurance Sample Quote

On average, the cost of landlord insurance is $1,312 per year. The cost of landlord liability insurance depends on many factors, including the following:

  • The location of the building
  • The construction
  • The amenities and facilities
  • The kind of business operation

Who pays for landlord liability insurance? Like in most cases, it is vital to sit down and talk to your insurance specialist about your situation. This will help them know your property and help you create a policy specifically designed to fit your needs. 

How To Compare Landlord Liability Insurance Prices

With the help of freestanding insurance specialists, you’ll be able to assess which kind of landlord insurance works best for you. They will also compare prices and policies from different insurance providers to guarantee that you and your tenants will be given the appropriate protection.

Other Advantages of Hiring a Freestanding Representative

Insurance policies are tricky, and comparing multiple options can be daunting. A freestanding insurance representative will help you make the process easier. They will ensure that you obtain the appropriate rental insurance tailored to your personal requirements. They will also break down difficult jargon and explain every insurance detail in simple and understandable language.

How Much Is Landlord Insurance per Month?

The average landlord insurance premium is around $109 per month.

How Much Renters Insurance Should a Landlord Require?

How much liability insurance do I need for rental property? A landlord should require $100,000 in personal liability coverage, $30,000 in personal property coverage, and $1,000 in medical bills coverage from an average tenant.

Is Landlord Insurance Worth Having?

You may think that being a landlord is easy and that you can earn money by sitting idly. However, it is worth noting that landlords also come across many risks, and you need a well-designed landlord liability insurance coverage package for these needs. Often called liability coverage, you can use this policy when renting a property to someone else.

The insurance will help you deal with situations that may arise due to problems between you and the resident. Here are some examples. Some old infrastructure in your property may cause issues to the tenant, and the tenant may decide to sue you. Some tenants may also sue you when asked to leave without following the prescribed procedure. Landlord liability insurance for rental properties can help you deal with these scenarios without having to spend thousands of dollars for every dispute.

What Is the Difference Between Landlord Insurance and Building Insurance?

Building insurance covers your home from various damages such as floods, fire, storms, and vandalism. While landlord insurance is similar, it also covers issues that are specific for landlords, such as loss of rent and malicious damage caused by tenants

Why Is It Important To Have Landlord Insurance?

Landlord insurance is a good idea because these days, anyone can sue anybody for endless reasons. And once the jury thinks you could’ve done better to safeguard your guests, you are up for serious financial distress. And even if the claim is still in your favor, defending yourself in court will cost you a lot of money. Being a landlord will expose you to different kinds of risks, and you should be smart enough to protect yourself against them.

Is the Loss of Rent Covered by Landlord Insurance?

Typically, landlord insurance will cover the loss of rental income due to the property being temporarily inhabitable. While some insurance companies include this as a part of the usual landlord insurance with liability policy, others offer it under the name of rent loss insurance. 

Do I Have To Pay Liability to Landlord Insurance?

Usually, property owner’s liability insurance is included in your standard landlord insurance policy and will protect you if someone gets injured on your property. 

Homeowners Insurance vs. Landlord Liability Insurance

While landlord insurance can be expensive, it can cover you in case of many risks that can happen when you’re dealing with tenants. On the other hand, traditional homeowner’s insurance covers the basic risks. For example, in a traditional policy, wilful acts are not included. Also, uninhabitable protection isn’t included in homeowner’s insurance, and tenant injuries don’t have the same coverage necessary to protect you. 

Read more: Landlord Insurance in Texas

Are you still confused about landlord insurance, or do you need some help getting a quote for your business? Contact us today and get all the information you need fast and for free! 


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