If you have a rental property in Northern Virginia, it’s imperative to have the right kind of insurance to protect your investment. But what kind of insurance do rental property owners need? A simple homeowner’s insurance policy is not enough.
Landlords need what is commonly called a landlord policy for their rental property. A landlord policy covers more than a homeowner’s insurance policy, providing additional protections for investment property owners. And unlike homeowner’s insurance, it does not require the property owner to live at the residence.
What else does a landlord insurance policy cover, and why do you need one?
Landlord Insurance Policies Cover More than the Building
One of the reasons investment property owners need a landlord policy is that the policy will cover more than the structure itself. A landlord insurance policy may provide additional benefits besides covering damage to structures on the property, such as coverage for:
- Loss of rent during vacancies
- Amenities such as gyms or pools
- Living expenses if your tenants need to live somewhere else while major repairs are being done
- Equipment used to service the rental
You can typically add coverage to your plan as necessary to ensure your rental property is fully covered.
The Right Insurance Policy Can Lower Your Liability
Having a landlord insurance policy can also help lower your liability as a landlord. For example, should a tenant or guest be injured while on the property, it can help cover their medical expenses or even your legal costs in such an instance.
A policy that covers these expenses can help lower your financial liability and protect you personally or your LLC from having to pay the high costs related to an accident that occurred on your property. Or worse, from having to handle a damaged reputation as a result.
What Landlord Insurance Does Not Cover
While landlord insurance provides additional benefits over a traditional homeowner’s insurance policy, remember that a landlord policy will not cover:
- The cost of your renter’s belongings. You should still require that your tenants have renter’s insurance to protect their personal items in the event of a flood or fire.
- Flood damage. Landlord policies also typically do not cover flood damage, so you may need to consider a separate policy if your property is located in a flood zone.
- Vandalism. Your policy may not cover vandalism to the property, especially a vacant property, so you may need to add this coverage if you live in a high-crime area.
- Major appliances or systems. HVAC equipment, septic systems, or kitchen appliances may not be covered, so you may need a separate property insurance policy for these.
- Properties under construction. These may also not be covered, so check with your insurance provider if you are planning to renovate or build a new rental property.
Remember that each policy may provide something different, so be sure to verify this information before purchasing a policy.
Have Questions About Your Rental? Contact Circle Property Management
Choosing the right landlord insurance policy will help protect your investment and reduce your liability. Have questions about your rental property or its insurance? Our professional team at Circle Property Management is here to help with your investment property in Northern Virginia. Contact us today to discuss your rental at (703) 349-0144.
About The Author
Patrick H. Page - Principal Broker | Licensed in Virginia and the District of Columbia
