Renting out a property can be very profitable, which makes it especially important for landlords to protect their
investment. Landlord insurance provides property owners the financial peace of mind they need for renting out their
properties.

Here is a simple guide to understanding insurance options for rental properties. 

Do I need landlord insurance?

Much like homeowners insurance, landlord insurance isn’t a legal requirement. However, many mortgage lenders require
landlords to get insurance for their rentals if seeking financing. 

Understand your landlord coverage options

Landlord insurance offers similar coverages to homeowners insurance. Primarily, a landlord insurance policy will
cover structural damage to the property. However, it will also cover loss of rent income if repairs cause the renter
to move. 

What’s not covered by landlord insurance?

Landlord insurance doesn’t cover everyday damage from wear and tear. It also may exclude damage from certain perils,
like earthquakes or floods.

Your rental property

The current state of your rental property can affect the cost of landlord insurance policies. This includes factors
like the age of the property, location, size, amount of rental units within the property and the presence of on-site
security.

For insurance providers, there is a higher level of liability when a property is being rented out to somebody other
than the owner. This can make insurance pricey. However, having a policy specifically for your rental property can
save you money in the future. 

Speaking with an insurance lender can help you find the right policy to protect your best interests.