Getting ready to move into a rental? Or maybe you have just finished your house or basement and you are preparing to rent it out. Knowing about landlord insurance before you do either of these things is of great importance and could save you as the renter or the landlord in the long run. Here is some information about landlord insurance to help you determine whether or not you need it.
Put as simply as possible, landlord insurance protects a property owner from losses and damages connected with renting out a property. Landlord insurance covers any building or property that belongs to the landlord and anything inside those buildings that belong to the owner. Usually landlord insurance includes standard protection against things like storms, theft, fires, etc.
As a Landlord
As a new landlord it is extremely important for you to get landlord insurance, it could end up saving you a lot of money and trouble later on.
- Short-term Rentals (Primary Residence)
This is for times when you are planning on renting a part of your home (like a room or a basement) for short periods of time. You could get a homeowners policy for a short-term rental, or if this is going to turn into a regular rental (multiple guests coming and going at different times) then you would need to purchase a business policy.
- Long-term Rentals (Second Home or property)
If you are going to rent out your home, basement, or a vacation property for long periods of time (6 months, a year) then you will need a landlord or rental dwelling insurance policy.
As a Tenant
Landlord insurance does not cover the property of tenants. Tenant property falls under a homeowners or renters policy, it applies to tenants/renters who wish to insure any of their belongings. As a tenant it is also important to know and understand the type of insurance your landlord has. Make sure they have landlord insurance in the first place; otherwise if something is damaged or goes missing, you could potentially be out of pocket.