Landlord and Rental Property Insurance: A Risk Management Essential

Hoffman Hanono
November 13, 2023

Owning a rental property can provide a pathway to long-term financial growth. But being a landlord also comes with a fair share of risks and responsibilities. Unexpected property damage to liability claims can be daunting and financially draining—a good reason to have a risk-management solution like landlord and rental property insurance.

What Does Landlord Property Insurance Cover?

Landlord property insurance typically covers:

The Dwelling: This coverage protects the condo, apartment, or house if it is damaged by fire, wind, lighting, or other covered losses.

Additional Structures: Besides the primary dwelling, landlord property insurance covers detached structures like garages, storage sheds, and fences.

Personal Property: Landlord property insurance covers items essential for maintaining your rental property. While personal belongings such as bicycles and televisions may not be included, equipment used for property upkeep, such as lawn mowers and snow blowers, would typically be covered.

What Does Landlord Liability Insurance Cover?

The landlord liability component of your insurance policy protects you if someone is injured on your rental property.

For instance, consider a situation where a tenant falls on poorly maintained stairs, and a court rules that the injury resulted due to your negligence. In such cases, you would typically be responsible for covering their medical expenses, legal fees, and related costs unless you have appropriate coverage. Fortunately, if you do have coverage, these financial obligations would be taken care of—provided they fall within the limits of your policy.

Additional Coverage for Landlords

In addition to property and landlord liability insurance, you may also want to consider additional coverage against:

Vandalism: This coverage protects your property from vandalization and covers both the building and its contents.

Theft: If your rental property is not vacant for more than 90 days, a standard landlord insurance policy usually includes coverage for repairing windows or doors damaged during a break-in. However, you can add a burglary endorsement for enhanced protection, which covers break-ins and damage caused by burglars who unlawfully enter the property.

Construction: If you plan on making renovations or significant improvements to your rental property, construction coverage ensures these projects are financially protected in case of unforeseen damage or loss during the construction process.

Building Codes: Building code coverage can assist you in covering the costs of bringing your property up to current building code standards if it is damaged or if you need to make updates to comply with new regulations after a covered loss.

Protect Your Rental Property With Hoffman Hanono

At Hoffman Hanono, our knowledgeable agents will review policies with you to ensure you get the coverage you need. Since 1959, we’ve proudly served businesses in San Diego and surrounding areas. Whether you need landlord and rental property insurance or any other insurance to protect your business, we can help! Reach out to us to connect with an agent today.