Landlord insurance protects property owners who rent out units to tenants. Since life is unpredictable, landlords are encouraged to purchase this type of policy. A knowledgeable insurance agent will determine precisely how much coverage you’ll need to ensure protection for all possible disasters. Before buying a policy, here’s what you should know about the basics.

FAQ about Landlord Insurance

What does landlord insurance cover?

A comprehensive landlord insurance policy includes three kinds of coverage: property damage, liability, and loss of income. Property damage covers the destruction caused by tenants, theft, fire, vandalism, and storms.

Liability coverage deals with anyone who injures themselves on the premises and files a bodily injury claim. Applicable coverage points for this policy include medical and legal fees, and other suitable settlements or verdicts. You’re protected when a tenant files a property damage claim against you; for example, failing to address a plumbing issue that destroys any of the tenant’s belongings is covered depending on your insurer.

Loss of income applies when the unit is uninhabitable. When your property’s damaged during an event, like a storm, and remains empty for six months while you repair it, the insurer will reimburse you for the missed rent.

Do I have to purchase landlord insurance?

While you’re not required by law to purchase landlord insurance, it’s a sound investment. Agents confirm that the damages associated with covered losses add up fast. Maintaining a comprehensive policy can save you thousands of dollars following a catastrophe.

Are the premiums for landlord insurance tax deductible?

Like most of the expenses that arise from maintaining a rental unit, the premiums for landlord insurance are tax deductible. They’re considered a legitimate business costs, which helps offset the cost of coverage.

How can I secure affordable landlord insurance?

There are multiple ways to obtain affordable coverage for your income properties. Bundling, which means purchasing a policy from the same carrier who provides your other plans, could result in a discount. Agreeing to a higher deductible can sometimes also reduce rates. Perhaps the most effective way to save on insurance, though, is working with a qualified agent who will be able to compare policies from numerous other providers.

To learn more about landlord insurance—or to start shopping around for a policy—turn to Pearson & Barnes Insurance. Based in Somerset, KY, this locally owned and operated agency is led by independent professionals who give every client the attention they deserve. Their agents are well-versed in home, auto, life, and business insurance, which means they're equipped to assist individuals, families, and commercial organizations. To request a quote from an insurance agent on their team, reach out online or call (606) 679-1450.