Question 1

What is landlord insurance?

Accepted Answer

Landlord insurance is designed for property owners who rent out a home, condo, apartment 1-4 units, or other residential property. It typically protects the building, certain property owned by the landlord, and the landlord’s liability exposure.

Question 2

What affects the cost of landlord insurance?

Accepted Answer

Property locationReplacement costAge and condition of the buildingRoof, plumbing, electrical, and heating systemsNumber of rental unitsClaims historyDeductibleLiability limitsTenant occupancyFire protection and wildfire exposureSelected coverage options

Question 3

What does landlord insurance typically cover?

Accepted Answer

Coverage varies by policy, but landlord insurance may include:The rental dwelling or buildingOther structures on the propertyLandlord-owned appliances and furnishingsPersonal liabilityMedical paymentsLoss of rental income after a covered lossCertain legal or defense costs related to covered liability claims

Question 4

Does landlord insurance cover my tenant’s belongings?

Accepted Answer

No. A landlord policy generally does not cover a tenant’s furniture, electronics, clothing, or other personal belongings. Tenants should purchase their own renters insurance.

Question 5

Does landlord insurance cover tenant damage?

Accepted Answer

It depends on the cause of damage and the policy. Sudden and accidental damage caused by a covered peril may be covered, while normal wear and tear, poor maintenance, and intentional damage are often excluded.

Question 6

Does landlord insurance cover water damage?

Accepted Answer

Certain types of sudden and accidental water damage may be covered, such as damage caused by a burst pipe. Flooding, long-term leaks, seepage, and maintenance-related water damage are commonly excluded or require separate coverage.

Question 7

Does landlord insurance cover lost rental income?

Accepted Answer

Many landlord policies offer loss of rents or fair rental value coverage. If a covered loss makes the property uninhabitable, this coverage may reimburse you for qualifying rental income you lose while repairs are being completed, subject to the policy’s limits and conditions.

Question 8

Do I need premises liability or general liability insurance?

Accepted Answer

Most 1-4 unit properties carry premises liability insurance and when you have 5+ units you'll need to get a commercial policy, which includes general liability insurance. For commercial properties 5+ units:While general liability insurance isn't typically legally required, it helps protect you and your business from the potentially crippling costs when lawsuits arise, and promotes ease of doing business. There may be circumstances where you're required to show proof of general liability insurance when signing a contract or applying for a license in specific states. Certain customers, especially large organizations, may have general liability insurance requirements before they'll hire you as a vendor. General liability insurance may be required for some types of professional licenses, such as plumbing or electricians. Finally, property management firms may require that you have general liability insurance before they'll rent you space.

Question 9

Does liability cover all my legal risks?

Accepted Answer

Liability insurance is a smart starting point for business protection. However, it doesn't protect against every claim that might arise. Claims related to the quality of your work or professional negligence generally are not covered under general liability insurance. For protection against the costs of these types of claims, you can purchase professional liability insurance or E&O (Errors and Omissions) insurance.You can customize liability insurance coverage to address the needs of your business. For example, you may also want to consider specific types of liability insurance, such as liquor liability or pollution liability, that provide relevant coverage for risks unique to your business. For additional protection, an umbrella policy can provide higher limits of insurance to supplement your primary general liability coverage.

Question 10

Do I need business auto insurance?

Accepted Answer

Yes, if you own, lease, hire or use vehicles for business, you should at least carry liability coverage. Most states require liability coverage for owned autos. If your business moves goods or people across state lines, liability coverage is a federal law. For larger commercial vehicles, you may need commercial truck insurance. 
You need commercial auto insurance if:

You use vehicles for business. 
A vehicle has a commercial license plate or tag.

You need commercial auto insurance if you or your employees use your vehicle as part of your business, such as:

Driving clients to the airport. 
Traveling to sales calls. 
Taking packages to a shipper. 
Shopping for office supplies.

You may need additional coverage for things like:

Delivering food, products or publications. 
Acting as a chauffeur, taxi or limo service. 
Transporting equipment and flammable or hazardous material. 
Towing vehicles, moving freight or trucking.

Question 11

Do I need property insurance?

Accepted Answer

While it may not be required by law, a property insurance policy is highly recommended for all landlords and building owners. Furthermore, your bank or lender may require you to carry property insurance to protect their investment.

Question 12

Do I need workers compensation insurance?

Accepted Answer

Typically, if you issue a W-2, you need workers comp insurance. The workers comp system is governed by state statute and rules around coverage for benefits and penalties for not insuring your employees vary by state.  
For example, California generally requires workers comp insurance as soon as you have one employee.

Question 13

Does workers compensation insurance cover all my legal risks?

Accepted Answer

An employee could take legal action for a workplace incident even if you have workers comp insurance. For example, an employee who is not subject to the workers compensation law might take legal action if they believe an accident is due to negligence on your part.   
A workers comp policy includes Employers Liability insurance. This coverage may help cover legal costs, including a possible settlement or judgment, in a lawsuit against you for workplace accidents that are not covered by a standard workers comp policy.  
Your employees are your greatest asset. Workers comp insurance helps protect them and support you so together you can stay focused on growing your business.

Question 14

What happens if I move out of my home and start renting it?

Accepted Answer

You should notify your insurance agent before renting the property. An owner-occupied homeowners policy may no longer be appropriate once the home becomes a rental property.

Question 15

How can I get a landlord insurance quote?

Accepted Answer

Contact us with some basic information about the property, including the address, number of units, estimated replacement cost, occupancy, rental use, and current insurance information. We can compare available coverage options and help you find a policy that fits your rental property.Have more questions about protecting your rental property? Contact us today for a landlord insurance review and personalized quote.Coverage varies by insurance company and policy. All coverage is subject to policy terms, conditions, limits, deductibles, and exclusions.

Question 16

Can I get landlord insurance if the property is vacant?

Accepted Answer

Possibly, but standard landlord policies may restrict or reduce coverage after a property has been vacant for a certain period. A separate vacant-property policy may be needed.

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