When it comes to insuring a Rental property, what policy does a Landlord need? Is a Landlord policy an all-in-one policy that covers dwelling and the landlord or is it separate from property insurance. For example, if I own a SFH, do I need Property Insurance AND Landlord Insurance or is there a single policy type that will cover both? Thanks!
@Larry Hawkins "Landlord Policy" is a nickname, not an official policy type. Industry wide, we will refer to policies as Property, Liability, Auto, etc,.
You do not need 2 different policies.
As for what you need, at a minimum, get General Liability and Property coverage
General Liability – This covers you against claims of Bodily Injury and Property Damage.
Bodily Injury – This is the most common coverage everyone is concerned about and rightfully so.These are the most common types of claims. It can be anything from a tenant tripping on a step, falling from a balcony, a guest or passerby slipping/falling on the sidewalk.
Property Damage – Example, your building starts on fire, and causes damage to your neighbor. Your ceiling comes down on tenant’s property.
Property – This protects the building from certain causes of loss, like fire, wind, water, etc.
Some secondary coverages you should include
Loss of Rents/Business Income – This coverage replaces your rental income if the building is damaged by a covered loss.
Property coverage highlights,
1) Ideally have Replacement Cost, not Actual Cash Value (ACV). Sometimes on older rentals, ACV may be the only option
2) Special Form, if they don't offer that, then Broad Form. If they only offer Basic coverage, be aware water and theft claims are excluded
3) Loss of Rents equal to 12 months of income
This is not a complete list, but are generally the most impactful at the time of a claim.
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