What is landlord insurance?
Rental properties can prove to be strong long-term investments, but they come with certain risks. Landlord insurance can help property investors in Vermont protect themselves and their properties against a variety of risks.
Landlord insurance offers tailor-made coverage for residential investment properties. Policies normally come with a combination of property coverages and liability coverages that can be customized.
Who in Vermont needs to have landlord liability insurance?
Most Vermont landlords investing in small residential real estate should have landlord liability insurance. Property coverages to protect against damage and destruction are also broadly recommended. Not insuring could have disastrous consequences if an accident occurs.
What properties are landlord policies available for?
Landlord policies are primarily used to insure residential properties with 1-4 units. These policies may be used for single-family houses, townhouses, condominium units, duplexes, and smaller multi-units.
A slightly different policy could be needed if insuring a larger residential building that has 5+ units, or if insuring non-residential investment properties.
What protections should landlords get when purchasing insurance?
When reviewing insurance policies, landlords may want to consider their property, liability, and their income stream. There are several coverages that can help protect these different facets:
- Property Damage Insurance: Can protect the rental property itself from damage. This coverage may also cover the landlord’s items stored on the property, such as lawn and snow equipment, HVAC systems, appliances, furniture, etc.
- Loss of Rental Income Insurance: Can protect against lost income when a disaster renders a property temporarily unusable.
- Landlord Liability Insurance: Can protect against lawsuits resulting from injuries on the property, such as those sustained by a tenant or guest during an accident.
- Commercial Umbrella Insurance: Can provide an additional layer of protection, beyond the limits of the landlord liability insurance.
An insurance agent experienced in landlord policies can assist with reviewing the coverage options that are available.
Is water damage covered by a landlord policy?
Some landlord policies provide coverage for water damage resulting from a plumbing failure. This may be an optional protection, or included within the standard coverages.
Protection against flood-caused damage normally isn’t included. This typically requires a separate flood insurance policy.
Would a tenant-filed liability lawsuit be covered by home insurance?
Home insurance policies often include personal liability coverage as a standard protection. This coverage is normally restricted only to personal risks, however, and is unlikely to cover a lawsuit filed against a landlord. Being a landlord extends risk beyond the standard personal risks that most are exposed to.
Thus, landlord liability insurance is normally needed in order to protect against tenant lawsuits.
Can one landlord policy cover multiple rentals?
Many landlord policies are able to cover more than one rental property. An agent who’s well-versed in landlord policies should be able to find several options that cover multiple rentals.
Are tenants’ belongings covered by a landlord policy?
Any protection that a landlord policy has for items on the premises is almost certainly restricted to only the landlord’s items. Anything that a tenant owns is unlikely to be covered by a landlord policy.
To help protect their own personal property, tenants should get renters insurance. This is an affordable option that offers coverage for non-homeowners, often including coverage for belongings and liability on the same policy.
Where can landlords find landlord insurance for rental properties in Vermont?
If you have one or more rental properties in Vermont, contact the independent insurance agents at Burlington Insurance Agency. Our Vermont agents understand the needs of landlords, and we’ll help find you a plan to protect your assets in an affordable way.
