If you own and rent out a property as a residential home, apartment, or condo, landlord insurance can protect you from any financial losses that might result from damages to the property. If you're not familiar with this insurance policy, it is similar to but different from renters and homeowners insurance policies. These answers to frequently asked questions can help you determine if the coverage is right for your situation.

A Guide to Landlord Insurance

What does it cover?

Every insurance policy differs based upon the policyholder's unique needs and choices, but landlord insurance typically provides funds to repair damages made to your property if it's affected by fire, hail, lightning, vandalism, or damage caused by the tenant. Many policies also protect you from liability if your tenants, visitors, or trespassers are injured on your premises. If the home becomes uninhabitable, a policy can also help you avoid income loss while it's repaired.

What isn’t covered?

Landlord insurance policies don’t cover appliance or equipment breakdowns, such as HVAC systems that suddenly stop working. They also don’t cover your tenant’s belongings in the event of loss or damage. Instead, their own renter’s insurance policy should pay for their lost possessions. This is why many landlords require proof of renter’s insurance as part of their rental agreements. 

Is landlord insurance required if I own or manage a rental property?

Landlord insurance is not required by law, but it is considered a wise investment. For example, if your apartment building experiences $50,000 worth of damage from a storm, it will be an out-of-pocket expense unless you have insurance to cover it. Many landlords assume their homeowners insurance also covers their rental units, but it most likely doesn’t.

Is it tax-deductible?

Landlord insurance is tax-deductible. According to the IRS, deductible expenses must be considered ordinary and generally accepted in rental businesses as well as necessary for managing and maintaining the property. Therefore, any form of insurance related to your rental property is considered an essential expense.

Rental property owners across Ohio, Indiana, and Kentucky can receive expert guidance choosing both landlord and homeowners insurance from the agents at Lighthouse Agency Inc., in Fairfield, OH. This general insurance agency offers various insurance policies ranging from auto to life insurance. Call (513) 860-9100 to request a consultation for personalized insurance services, or visit them online to learn more about their landlord policies and services.