Landlord Toolbox

Landlord Insurance

Asset Management
Similar to homeowners insurance, landlord insurance helps cover the cost of repairing your rental unit when the unexpected occurs. But the big difference with landlord insurance — and the big win here — is that it’s actually a business policy. The insurance options for commercial coverage can be customized by our expert agents to meet the exact needs of your real estate investment. Read on to understand the benefits of landlord insurance and why you really need it. With everything you’ve invested into your rental property, you’ll see that carefully insuring your real estate is just as important as every other key decision you’ve made along the way.

Work with an Agent

With the help of a licensed agent, you can customize your policy to fit the exact needs of your rental and better protect your business. 

Who Needs Landlord Insurance?

Your landlord policy protects your property when a covered loss impacts the physical property of the building or space that you’re renting to tenants. From fire to break-ins, you can find coverage that can help spare your finances. For property owners, this specialized type of insurance is essential because tenants can sometimes cause costly damage. You need a policy that works as hard as you do, and one that can benefit your business needs as well. As for the business expense of paying for landlord and umbrella premiums, you’ll likely be able to write the cost off through tax deductions, making excellent coverage more affordable than ever.

Reduce Break-ins with Inexpensive Security Measures

One of a landlord’s top priorities is to help ensure tenant safety. Adding security measures like installing security doors and deadbolt locks can go a long way to prevent break-ins. By carefully controlling keys and replacing locks as tenants change over, you can minimize theft with a nominal cost. And well-lit exteriors paired with motion-sensitive video systems also provide an inexpensive deterrent to thieves.

Landlord Insurance & What It Covers

Landlord insurance covers rental business essentials that are typically not covered under other types of homeowner’s policies. Because it’s a business owner’s policy, it covers damages to your rental property, like the physical structure of the building, and its lighting fixtures, for example. This coverage usually extends from your property that’s left in the living space all the way to the items you own that are safely stored outside — on rental property — as well. For instance, if your rental’s kitchen comes with appliances in the kitchen or you keep a new lawn mower in the garage, these items would be covered and protected. Here’s what landlord insurance can cover:

Building coverage

When a covered loss occurs and your building’s damaged, our property coverage will go to work and help you pay for replacing or repairing damages, protecting you from greater financial losses.

General liability insurance

You’ll get the coverage your business needs because accidents happen, and we all make mistakes. This important coverage can help protect you from bodily injury, property damage and/or personal injury and advertising injury expenses that arise from the operations of your rental properties or condo association.

Commercial umbrella liability protection

Providing additional protection on top of your primary general liability coverage, our commercial umbrella liability protection gives you extra security against legal and financial actions which can help you against financial losses.

Medical expense coverage

This important coverage helps cover the cost of immediate medical care for injuries that take place on your premises, even when your business isn’t liable.

Auxiliary structure coverage

This coverage extends to certain property items that support your rental business, such as sheds, unattached garages or fences, swimming pools and clubhouses.

Flood insurance

Offered through the National Flood Insurance Program, this flood insurance coverage can safeguard your investment properties when the waters rise.

Does Landlord Insurance Cover Tenant Injuries?

Yes, under certain circumstances, your landlord insurance can cover tenant injuries. But it depends on how the injury occurred, and who was found legally responsible for the injury and other factors.

Suppose a tenant is cooking and burns a hand while reaching into the oven. Because the tenant failed to take necessary precautions and was burned as a result, the tenant would likely be held responsible. However, if a window in your rental was difficult to open and a tenant was injured while attempting to open it, they may have a case to be reimbursed for medical expenses related to that injury. If so, your landlord insurance would potentially kick in and cover those expenses — up to the policy’s limit.


Should You Require Tenants to Purchase Renters Insurance?

It may not be mandated by law, but requiring your tenants to have renters insurance is good for landlords. Suppose your tenant leaves a pot of water boiling on the stove and then leaves to run a quick errand. It’s found that the resulting fire is squarely the tenant’s responsibility. But without an active renters policy in place, the tenant may not have the funds to pay for the kitchen’s reconstruction in addition to restoration fees due to smoke damage. What if they’re unwilling to pay? When your tenants have renters insurance in place, they only have to come up with the deductible to activate the coverage. If the space is rendered uninhabitable from the covered loss, the renters coverage may provide funds for the tenant’s temporary lodging as well. 

Improve Tenant Safety with Electronic Services

Keep rent payments predictable and on-time with electronic funds transfers. In addition to making your job easier, your tenants will love the ease-of-use that comes with a direct deposit of rent funds into your business’ bank account. Additional e-services like online maintenance requests and tracking can streamline turnaround of repairs and get necessary work done more efficiently, even helping to reduce your exposure to liabilities.

Protect Your Investment with Landlord Insurance

With so much at stake, American Family’s landlord insurance can protect you from the unexpected. But even more than that, it’s protection that delivers peace of mind because you made the smart move to invest in protecting your dreams. When you reach out to your agent and request a quote, remember to bring an inventory of all the personal property you’ve left on-site, like kitchen and laundry appliances, furniture and tools. You’ll get a custom-crafted policy in return and you may find you’re better able to focus on growing your business, knowing that you have the protection your investments need.

Additional Reading

Keep Your Tenants Safe

Whether it's making sure sidewalks are shoveled or fire detectors are working, these tips can help reduce liabilities on your property. Learn how to keep your tenants safe.