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Homeowner’s Insurance, Renter’s Insurance, and Liability Insurance: What Do I Need?

As a rental property owner, one of your top priorities is protecting yourself from loss. Real estate is a smart investment option, but only if you’ve prepared for the worst with the right kind of insurance. Of course, knowing what that is can be a challenge; that’s why gathering information is an important first step to getting exactly the protection you need.

There are many types of insurance that are relevant to investment property real estate: Landlord or Investor insurance, landlord liability, umbrella, special perils, renter’s insurance, renter’s legal liability insurance. Each type is different because they are designed to protect different things, including certain individuals based on their ownership status.

Landlord or Investment Property Insurance is just what the name suggests: it is insurance designed to insure an investment property owner against loss or damage to a residence that they own. This type of insurance provides coverage for damage to the home but not for the renter’s personal property. It is different from a homeowner’s policy in that a homeowner’s policy is designed to protect the home’s owner, who resides within the property to be covered. For this reason, homeowner’s insurance is not designed to protect rental property owners or rental homes. While you may homeowner’s insurance on your primary or even secondary residence, if you rent your properties, you need a different type of insurance, one that will protect you and your property from the liabilities of renting out your home.

Liability Insurance is a major component of landlord insurance. It covers losses that other types of insurance do not, including theft by residents or their guests, vandalism or deliberate damages caused by residents, loss of rent due to resident default, and even legal expenses to carry out an eviction, if needed. Liability insurance not only covers potential damage to your property, it also protects the financial side of your investment as well.

Renter’s Insurance and Renter’s Legal Liability is a type of insurance policy that covers a renter and their personal property from loss or damage. The legal liability covers loss due to the renter’s negligent acts, such is the case in slip and fall or leaving the iron on.  Because of its limited scope, renter’s insurance does not cover loss or damage to the rental home itself, and so is not sufficient protection for an investment property. Requiring your residents to obtain renter’s insurance is an important part of the leasing process, but experienced landlords will also ask for renter’s legal liability insurance as well.

At Real Property Management, we can help you determine how to best protect your valuable properties and your financial well-being with the right insurance coverage. Protecting your investment and keeping them profitable is our top priority. To learn more, please contact your nearest Real Property Management office.


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  1. Ava Moore says:

    Who has the type of insurance for landlords.

    1. Michael Stone says:

      Please try doing a Google search for terms such as ‘landlord insurance’, ‘investment property insurance’, ‘landlord liability insurance’ to find companies.

  2. sydney says:

    do you have to buy renter insurance through the management company? even if you already have your own renters insurance with another insurance company?

    1. Michael Stone says:

      Due to the fact that our office is not licensed to practice law in any state or province we are unable to answer questions with regard to Landlord/Tenant or other laws or contracts including individual lease agreement questions. For assistance with these items, please contact your local attorney, fair housing authority or other tenant advocacy programs available.