Protect Your Property (And Your Wallet): Why Landlords Need Eviction Insurance

Being a landlord can be a profitable venture, but it’s not without its financial risks — especially when a tenant stops paying rent or violates lease terms. Evictions are often stressful, time-consuming, and expensive. That’s where eviction insurance comes in. Also known as rent guarantee insurance or landlord legal protection insurance, this coverage can provide a financial safety net when eviction becomes unavoidable.
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If you own rental property, eviction insurance could be a smart addition to your risk management strategy — helping you protect your investment and your income stream.

What Is Eviction Insurance?
Eviction insurance is a type of coverage designed to help landlords manage the costs associated with removing tenants who have breached the lease agreement. It can cover various expenses related to the eviction process and any financial loss resulting from unpaid rent.

Depending on the policy and provider, eviction insurance may include:

• Legal fees and court costs associated with filing an eviction
• Reimbursement for lost rental income during the eviction process
• Sheriff’s office or bailiff fees
• Lock replacement or property rekeying
• Coverage for damages beyond the security deposit

Some policies also bundle in rent guarantee insurance, which reimburses lost rent due to tenant default — even before the eviction is completed.


Why Eviction Insurance Is a Smart Move for Landlords
Evictions are more common — and more costly — than many landlords anticipate. According to industry estimates, the average eviction in the U.S. can cost $3,500 or more, when accounting for:

• Missed rent
• Legal fees
• Court costs
• Lock changes and repairs
• Time lost in re-renting the unit

Eviction insurance provides financial protection and peace of mind, allowing landlords to recover losses and get the property back on the market faster.

Key benefits of eviction insurance include:
✔️ Reducing out-of-pocket expenses during a legal dispute
✔️ Minimizing income disruption from unpaid rent
✔️ Offsetting legal and administrative costs
✔️ Supporting faster resolution and turnover
✔️ Helping small landlords avoid financial hardship from a single tenant issue


What Eviction Insurance Doesn’t Cover
Like all insurance, eviction policies have exclusions. These may include:

• Voluntary lease terminations or mutual move-outs
• Property damage unrelated to eviction
• Tenant disputes not resulting in legal proceedings
• Issues stemming from poor tenant screening or unfiled paperwork

Eviction insurance works best when paired with strong lease agreements and diligent tenant screening — it’s a safety net, not a substitute for proactive property management.


The Bigger Picture: Why Landlord Insurance Still Matters
Eviction insurance is a valuable supplement, but it doesn’t replace the need for landlord insurance (also known as rental property insurance). A comprehensive landlord policy covers:

• Damage to the building caused by fire, storms, vandalism, or certain types of water loss
• Liability protection if someone is injured on the property
• Loss of rental income due to covered property damage

Together, landlord insurance and eviction insurance provide a layered defense against the legal, financial, and structural risks of renting out property.


Final Thoughts: Don't Let Evictions Derail Your Rental Business
If you’re a landlord, especially in today’s uncertain rental market, eviction insurance offers important protection. Whether you own one rental unit or a portfolio of properties, a single non-paying tenant can cause significant financial strain. With eviction insurance, you gain not just compensation, but confidence to manage your property proactively and profitably — even when situations go off-script.

At Hayek Insurance, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to 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. 

Disclaimer: The information presented in this blog is intended for informational purposes only and should not be considered as professional advice. It is crucial to consult with a qualified insurance agent or professional for personalized advice tailored to your specific circumstances. They can provide expert guidance and help you make informed decisions regarding your insurance needs.​