Renting apartments, duplexes and other types of homes can be a mutually beneficial arrangement, as landlords can earn income while their tenants have a place to live with limited financial responsibilities. However, both parties involved in these agreements must understand and address possible risks and exposures. Assessing insurance needs and securing appropriate coverage is highly advisable for both property owners and their renters.
What Insurance Do Landlords Need?
Property owners should make sure they financially protect their property when renting it out to tenants by securing appropriate landlord insurance. Also known as rental property insurance, these policies can help account for various losses and expenses arising from many common incidents. Specifically, a landlord insurance policy may include the following coverages:
- Building coverage can help pay for repairs or rebuilding if a rental property is damaged by covered perils, such as fires and vandalism.
- Landlord liability coverage may offset third-party losses for which a policyholder is at fault, such as if a tenant or guest is injured due to poor building maintenance.
- Personal property coverage can financially protect items the landlord leaves on-site, such as maintenance equipment.
- Loss-of-use coverage may compensate for reduced revenue if a property is damaged by a covered peril and unable to be rented out.
What Insurance Do Renters Need?
While renters may not have the same financial stake in their home as if they were to own it outright, there are still significant stakes that may require insurance. Additionally, some landlords may mandate tenants carry renters insurance as part of their lease agreements. Although exact details can vary, renters insurance may often include the following:
- Contents coverage can help manage losses involving a tenant’s personal belongings, such as their furniture and electronics.
- Personal liability coverage can assist with other parties’ losses if a renter is at fault, such as if a guest is injured or a kitchen fire damages the building.
- Additional living expenses coverage can compensate policyholders if a covered incident forces them to vacate their home, such as for hotel accommodations.
We’re Here to Help
At Insurance Discounters of Texas, we can help landlords and tenants secure suitable coverage. Contact us today to get started.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.