Landlord Insurance: to Buy, or NOT to Buy...THAT is the question!

[Foster Algier]

Renting out property can always be a gamble, with the risk of a bad tenant who could, for example, smash a hole in the wall or bail on paying rent. In either case, the landlord is left financially liable.

But could landlord insurance help investors better protect their property investments?

“Landlord insurance is a vital add-on for anyone planning to rent some or all of a property to another party,” says James J. Whittle, assistant general counsel and chief claims counsel for the American Insurance Association.

Landlord insurance coverage varies based on location; but, in general, it will protect the house, apartment or condo being rented out against “covered perils.” Those “covered perils” usually consists of severe weather, natural disasters and vandalism. It also might cover the owner if someone is injured at the property, like if the tenant trips on the entry stairs and then tries to sue the landlord.

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