Landlord Insurance for Single Family Homes
In it’s simplicity landlord insurance for single family homes will save you from:
Severe financial loss if your rental home is damaged or destroyed.
Damage and loss to any property that is owned by you within the house such as washer, dryer, etc.
Financial loss due to liability claims, medical expenses, and other amounts that result from property damage and personal injury suffered by others in which you are held accountable.
Reimbursement of lost rental income as a result of a covered loss.
The six basic coverages found within landlord insurance for a single family homes are:
This coverage insures the structure, your home, and attached structures from damage resulting from these perils:
Fire and lightning
Windstorm and hail
Theft, vandalism, and malicious mischief
Riot and civil unrest
Damage from vehicles
Sudden, accidental damage from smoke
Aircraft and objects falling from the sky
Weight of snow, ice, and sleet
Accidental discharge or overflow of water or steam from your plumbing
Freezing of plumbing
Sudden, accidental tearing, cracking, burning or bulging of a steam pipe or hot water heating system
Sudden and accidental damage from artificially generated electrical current
A landlord insurance policy will exclude a loss due to flood, earthquake, and landslide. Flood insurance is available through the federal government’s National Flood Insurance Program, for an additional premium earthquake insurance and landslide insurance are available as additional coverage options if your rental home qualifies.
‘Other Structures’ is considered to be separate and distinct from the dwelling by clear space or connected to the dwelling by a fence, wall, wire, or a similar type of connection. Most policies provide your other structure coverage limit at 10% of whatever your home is insured at. Examples of these types of structures would include a barn, shed, detached garage, gazebo, fence or other structure not attached to your home. The other structures coverage insures these structures against the same risks that covers your dwelling.
The property or personal belongings insurance portion of your rental insurance policy protects loss or damage to personal property. This would include washer, dryer, refrigerator, etc. any property that is owned by you which is part of the the rental home.
If your rental home is not fit to live in as a result of a loss, your landlord insurance policy will cover your “loss of rental income”. The policy will provide reimbursement you with the loss of rental income while you wait for your tenant to move back into the home. The dollar limit on this type of coverage is typically 10% of your home’s replacement cost limit.
Important Info In order to secure your lost rental income you will need to provide the insurance adjuster with a valid rental agreement, if no rental agreement is in place you will not have this protection.
If you are found responsible & liable for personal injury or property damage suffered by another person, your insurance company will investigate the event and might offer a settlement amount owed to that person through your liability coverage. This is only true if carelessness or negligence, rather than intentional misconduct, caused the injury or damage.
There is no deductible with liability claims.
If a nonresident of the rental home requires medical assistance as a result of a minor injury suffered on or near your premises, your insurance company can pay his or her medical expenses with the medical payment to others coverage. This covers necessary medical expenses incurred within 3 years of an accident causing bodily injury and would include charges for medical, surgical, x-ray, dental, ambulance, hospital, professional nursing, and funeral services.
Medical payments to others does not apply to injuries of named insureds or any regular resident of the household. Medical payments to others is a good will payment in the hopes of preventing a larger lawsuit down the road as the payment should not be construed as admitting liability.