Does Landlord Insurance Cover Rent Loss?

​A homeowners insurance policy may not cover rent loss if you are a landowner. However, landlord insurance should provide coverage for this specific loss. This article covers the value of landlord insurance and the essential elements of a typical policy. Keep reading to learn more.

What is covered?
House insurance, third-party obligations, and coverage against a failure of rent are just a few features that should be included in comprehensive investment insurance for landlords. If your property becomes uninhabitable and your tenants are required to vacate for a while, loss of rent insurance may reimburse you for the income you have lost.

What kind of insurance do landowners require?
The kind of insurance you need depends on the time you rent your property and how frequently. Generally, there are two situations:

Long-term Tenant
Landlord insurance, also known as a "rental dwelling policy," is required by property owners who rent out a property or apartment for six months or more. Additionally, landlord insurance is comparable to homeowners insurance but specifically designed to guard against losses associated with leasing a property. Landlord insurance might be more expensive than standard homeowners insurance.

The Regular Tenant
Property owners who commonly rent out their primary residence for brief periods are typically regarded by their insurers as business owners. Therefore, traditional homeowners insurance policies do not typically provide coverage for these property owners. For their coverage requirements, they must instead buy a commercial insurance policy.

What excludes landlord insurance?
The typical landlord insurance policy frequently includes rent default. It is possible that it does not always cover the loss of rent brought on by the tenant's inability to pay. In some circumstances, a separate policy known as rent default insurance might be available to protect you if the tenant is unable to pay payments.

It's critical to comprehend your policy in its entirety for various reasons, including determining whether the default policy covers rent default.

Conclusion
Anyone who owns a home they use as a rental but does not reside in should consider the advantages of a landlord insurance policy. Also, landlord insurance might be appropriate if you work for a real estate agency. That may oversee renters on behalf of a homeowner who rents their home.

At Hayek Insurance, we do our best to ensure that our clients are well-protected with affordable and comprehensive policies. We will go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (805) 496-8835 or Click Here to request a free quote. Topics and coverage discussed in this article are not guaranteed, consult with your agents to determine what your policy does and does not cover. We are more than happy to help!