Landlord insurance is essential if you own property that is rented out to a tenant, as it protects you financially and legally against some common mishaps that can occur. This type of insurance covers the building and its furnishings, rental income, liability and any injury caused to a tenant through your negligence. –Cheap Landlord Insurance
The policy is similar in structure and coverage to a homeowners policy and is often known as a rental dwelling policy, or RDP. The two most important factors in any such insurance will be the liability and the dwelling coverage limits. Dwelling coverage is important even if you rent the property yourself that you are renting out, rather than own it and unless you have adequate coverage, it is pointless to even have landlord insurance.
The liveable square foot area of the property and the quality of its construction are both important when it comes to assessing a dwelling coverage amount. A local contractor can give you an idea of this figure, which may not be strictly accurate, but is enough to choose the right amount. Most cheap landlord insurance policies that provide coverage over a period of time will allow for inflation, although you should verify this with your insurance company or agent.
You are legally responsible if somebody is injured on any property that you own and a tenant can sue you if your negligence caused an injury. Landlord insurance can help to protect you against this scenario and the standard limit with most policies is $300,000. Of course, there is nothing to stop you from taking out more.
If you have belongings of yours in the rental property, dwelling policies also cover loss or damage, although you do not have to carry this coverage if the property is not offered as furnished. Regardless of the coverage you choose to have, cheap landlord insurance is essential in order to protect your assets and provide peace of mind.