What Types of Insurance Do Landlords Need?
Landlords will typically need additional insurance to cover rented property that is not covered under regular homeowner's insurance. Insure rented property against damages and stolen property with advice from a financial adviser and insurance broker in this free video on insurance.
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This is John Pinelli, financial representative, talking to you today about what types of insurance do landlords need. Typically, landlords will need something more comprehensive than just your typical homeowners insurance. Many homeowners insurance policies do not cover you while you are renting out your property to others. So it's important, if you do have an existing homeowners policy and you're intending on being a landlord or renting out your property, to first check and see if your current homeowners policy does cover renting. If your homeowners insurance does not cover renting out your property to others, you may need to obtain some additional landlord insurance if you intend to rent the property to others. Landlords will typically insure just the home itself -- the building, the dwelling -- but some policies may also include what's inside of the residence. Some do, some don't, it just depends on the policy. Some landlords don't want to cover what's inside the property because they don't know what's inside the property, and, you know, they're worried...they're worried that their tenants might submit some type of false claim. So what landlords can do to protect them in that aspect is they may require their renters to have some sort of renters insurance to protect the property within the dwelling. If the people's property is stolen or damaged, the landlord isn't liable in any way, and the people can receive some compensation for the property that they have lost and some indemnification. So landlord insurance would typically cover all the major things covered in your homeowners insurance policy, but in addition to that, it would cover some damages caused by tenants. Even if the damages were caused intentionally and maliciously, purposefully, et cetera, these damages would still be covered. And the reason that that may important is you could be renting to a bunch of college students who get angry and decide to punch a bunch of holes in your wall, well, if you have a quality policy, that will be covered despite the fact that it is something that was intentionally done. So that is one reason why it's very important to have some landlord insurance in addition to having the homeowners insurance because it is a lot more comprehensive, and many insurance policies will not cover you for anything if you happen to be renting out the...renting out the property or place of residence. So this has been John Pinelli, financial representative, talking to you today about landlord insurance.