Landlord Insurance Basics and Benefits

Landlord Insurance Basics and Benefits

March 1, 2022

As a landlord, it is essential to protect yourself and your investment in the event of unforeseen circumstances. In many cases, landlords are unaware that traditional homeowners insurance is not sufficient for properties that are not occupied by their own owners. A landlord insurance policy is what rental property owners need to protect themselves from property damage and liability for a tenant-occupied investment property.

What does landlord insurance cover?

Landlord insurance policies cover damage to a rental property that the owner themselves does not occupy. Coverages are similar to a homeowners policy, and include perils such as fires, burst pipes, flooding, vandalism, some natural disasters, and more. In addition, policies provide landlord liability coverage, which provides protection in the event that a tenant or guest is injured while on property. The policy can cover legal fees and/or medical expenses in the case of a lawsuit.

Landlord insurance can also cover human perils for vandalism, theft, riot, or civil commotion. Depending on the property location, this can be a valuable coverage to protect your investment. When choosing your insurance provider, there are significant advantages to working with a landlord specialist, like Steadily, who has familiarity with the unique needs for rental property owners.

What types of properties can be insured?

Landlord insurance covers all types of rental properties, including: single family homes, apartments or condos, apartment buildings, vacation and short-term rentals, fix n’ flip properties, and more. Specialist insurers can also cover more unique properties, like mobile homes.

For owners with more than one property, several dwellings can be covered under one policy. This can also results in additional savings as many landlord insurance companies will offer discounts for multiple properties, in addition to standard discounts for things like years claims-free. From single rental properties to larger investor portfolios, landlord insurance will ensure your investment is protected.

Is landlord insurance required by law?

Landlord insurance is not a legal requirement; however, it will protect you from a catastrophic loss while owning and managing a rental property. If a fire or natural disaster occurs and you are not insured, you are required to pay for the total cost to rebuild out-of-pocket, which can be hundreds of thousands of dollars.

Landlords insurance provides peace of mind in the case of an emergency, and also ensures that you only need to pay a small deductible if something were to occur. A deductible is the amount paid by the policy-holder before the insurance company will initiate payment for repair or rebuild.

To make the insurance process easy, fast, and affordable, landlord insurance companies like Steadily, have created a digital-first experience for landlords. Landlords can buy policies online, via phone, email, or SMS with coverage as quickly as the next business day.

Benefits for Padvest Users

Padvest helps savvy investors take the risk out of their investment before purchase. By partnering with Steadily, Padvest users can now also receive an estimate for insurance costs along with your detailed financial property report. Simply type in the address of the property, and many property details are seamlessly prefilled, like square footage, number of bedrooms, and more. See a full picture of your financial investment and risk assumptions all in one place and change assumptions and coverages to model different scenarios. Best of all, Steadily offers commitment-free quotes and Padvest is currently free to use.

Final Words

There are a number of financial considerations for landlords, including having the right amount and coverages for your rental property insurance. Specialized landlord insurance providers like Steadily make the process fast, easy, and convenient. By purchasing the right insurance, rental property investors benefit from the peace of mind and coverage in the event of damage to the property, or injury to tenants or guests. By partnering with Steadily, Padvest users have a comprehensive view into the financial considerations associated with purchasing a rental property.