Landlord property insurance a must?

Question

I live in a non-flood likely area in south Texas with very little inclement weather.

How necessary is landlord rental property insurance? Is there something specific I should be looking for in regards to coverage?

Theresa Harris · Answer

Yes.  What if your tenant caused a fire, what if they slipped and sued you?

Cameron Moore · Answer

It is highly recommended as it can provide financial protection for landlords in case of various risks such as property damage, loss of rental income, and liability.

When shopping for landlord rental property insurance, you should look for coverage that includes:

• Property damage: This covers the cost of repairing or rebuilding the rental property in case of fire, storm damage, vandalism, etc.
• Loss of rental income: This covers the loss of rental income if the property is unable to be rented out due to a covered loss.
• Liability: This covers the costs of defending and settling any lawsuits arising from a tenant's injury or property damage on the rental property.
• Medical payments: This covers the costs of medical treatment for tenants or guests who are injured on the property.

Make sure to also compare policy limits, deductibles, and exclusions for each type of coverage when choosing a landlord rental property insurance policy. Be sure to find an insurance broker than can shop the whole market.

Jason Bott · Answer

@Alex Castillo We have several clients who self insure on the Property, but no one who self insures for the Liability.

If you have a lender, they require you to have coverage in place.  95% of investors will have a lender, so self insuring is not an option.

If you own the property outright, then you have to determine if you want to pay out of pocket for

1)  Any sort of property damage;  Fire, Wind, Frozen pipes, etc.

2)  Liability claims;  tenant slip & falls, or even death in the property they argue you had some responsibility for.

Mary Smith · Answer

@Alex Castillo Landlord insurance is a must. It helps safeguard you if your property is damaged (say by fire or storm), or even if someone is injured on your property.

Eliott Elias · Answer

Are you referring to flood insurance? If so it's not necessary if you're not in a flood plane.

Bob S. · Answer

You're kidding, right? Of course, you need ins, PLEASE hire a PM co, before you lose it all, this is not going to end well,

All the best

Henry Clark · Answer

You rejected my application for a unit?   Was that because I’m bald?  You’re lucky not a protected class.

One of the benefits of having insurance, they take care of the legal work.  You don’t.

Henry Clark · Answer

You rejected my application for a unit?   Was that because I’m bald?  You’re lucky not a protected class.

One of the benefits of having insurance, they take care of the legal work.  You don’t.

Jonathan R McLaughlin · Answer

@Alex Castillo Oh Alex, you are kidding right?....please get insurance. You can't sneeze in a hospital for less than $12,000 and imagine a year of physical therapy for someone who twisted their ankle on a step or something...and it doesn't have to be your tenant. And most mortgagors require property insurance anyway.

insurance is usually separate from the loan so not in escrow. YMMV

Landlord property insurance a must?

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