You’re on the right page if you’re wondering what insurance coverages landlords need. Being a landlord comes with additional insurance coverages not common to the single-family homeowner.

Landlords are vulnerable to risks. Some of these risks are obvious, some not so much! That is why landlords are required to carry a certain amount of insurance.

When you’re just getting started, many details can be overwhelming. Determining which insurance policies are necessary can prove difficult, and it’s easy to overlook a key aspect, leaving you uninsured and unprotected.

Before buying any insurance policy from an insurance professional, go over this simple list for ideas on the insurance coverages landlords need.

5 Insurance Coverages Landlords Need

1. Property Protection

The first policy is property protection and is the most basic type of insurance. It can cover your building from damage caused by fire, lightning, wind, hail, ice, snow, and other incidents listed in your policy. A standard property protection policy will cover the cost of rebuilding your home or repairing it after damage occurs.

2. Personal Property Protection

Personal property protection covers the personal items you keep on your property — appliances, furniture, tools, etc. Your landlord policy will not cover your tenants’ personal belongings, and they will need renters insurance for that coverage. Renters’ insurance covers their belongings against loss or damage from a fire or other causes covered by the policy.

3. Liability Protection

You can be held liable for incidents on your property, and tenants can sue you should an accident cause harm or damage to either party.
Getting liability insurance can protect you from financial responsibility in these situations.
Suppose a tenant trips and falls in your rental unit and is injured. In that case, liability insurance may pay for medical bills and any damages awarded by a court if you are deemed negligent.

4. Rental Loss Protection

Rental loss protection covers the costs that arise when a property becomes uninhabitable due to circumstances out of the landlord’s control. If a tenant cannot live in the rental unit for an extended period due to damage, rental loss protection is essential and means that you will still receive income from rent. Rental loss insurance does not apply if there is no tenant on-site at the time of a covered event.

5. Flood Insurance

In Louisiana, standard policies do not cover damage resulting from floods. For this reason, it’s essential to consider getting a separate flood insurance policy, regardless of where you live. It can be a safety net if you live in an area prone to flooding. 

You can obtain flood insurance from the National Flood Insurance Program (NFIP) or a private insurer.

Putting It All Together

Insurance is not a one size fits all service. What you need will depend on various factors, including your financial situation and the kind of property you are looking to rent out. Comparing quotes from multiple sources is generally a smart idea when buying one. For all insurance questions, please get in touch with an insurance professional.

If you’re looking for a property management company in New Orleans, we’d love to help. Our team and our extensive knowledge of all things New Orleans specializes in property management. If you have further questions about our services, don’t hesitate to contact us, and we’d be glad to help. 

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