Landlord insurance costs more, and covers more than homeowner's insurance.
Landlords face a host of problems homeowners don’t have to deal with. Rental buildings contain multiple tenants and families, each increasing potential for property damage. This is why landlord insurance is typically 20-30% more than homeowner’s insurance. Landlord insurance also covers more, including damage done by intent. Here are the important coverages landlords have to consider when shopping for a policy.
Renter’s liability is very similar to liability coverage from a homeowner’s policy. It covers claims for all injuries resulting from work performed on the building.
Dwelling coverage covers the systems of the home and units, including plumbing, mechanical, electrical and major appliances. If apartments come furnished, dwelling coverage also covers the furniture. Dwelling coverage also covers the damage to the exterior of the building.
Lost rent coverage pays landlords rent in the event units are uninhabitable. This could include a major leak or infestation. The coverage lasts as long and the unit is unlivable. Lost rent coverage may also reimburse landlords for lost revunue from tenants who fail to pay rent.
This add on coverage pays out in the event tenants need an emergency repair, such as a major plumbing issue.
Landlord insurance never covers tenants’ belongings. Renter belongings need to be covered by a renter’s policy.