This is, basically, a policy meant for anyone renting out a property they own. As Pro X Management in Southeast Kansas explains, it helps protect landlords from risks associated with renting out a property, including loss of rent and property damage.
The following are the protections that a landlord’s insurance coverage can help provide you with.
Damage to the structure itself. Structural damage is any damage that affects your home’s core integrity. This may include damage from things like fire, water, and even vandalism.
Loss of income. If your tenant breaks their lease early and you end up losing your income, a landlord’s policy may help compensate you.
Damage from accidental or sudden events. A good example is a burst water pipe that ends up flooding your home.
Excessive property damage. A landlord’s insurance may also help cover for excessive damages that your tenant causes. Examples include damaged or missing door locks or handles or a smashed bathroom mirror.
Acts of nature. A typical landlord’s insurance policy may help cover damage resulting from tornadoes, earthquakes, or hurricanes.
So, how much should you expect to pay for it? Well, expect to pay anywhere between $960 and $1,320 every year, according to studies by ValuePenguin.com. How high or low you pay depends on a myriad of factors, including your rental property type and the location.