What's covered under a landlord insurance policy?

[Mike Rubin]

Sorry if these sound like newbie questions…

1) Under normal circumstances, what does a landlord policy cover?
2) Is a landlord policy necessary?
3) Which coverages aren't normally offered that a landlord should probably take up?

Thanks!

[Kelly N.]

1. I can't speak for anyone but myself, but here's what my 'Landlord Indemnity' policy covers:

Dwelling
Other structures (garage)
Personal property (covers multiple kitchens)
Fair Rent loss
Business liability
Medical payments

Looks to me like the main difference will be in personal property coverage (in MF's it will cost more to cover kitchen appliances) and the rental loss.

2. If you have a mortgage, you have to have insurance. My mortgage documents state that I must have the rental loss coverage- they want to get paid even if the house is in ruins...

3. Not sure, but I will add the mortgage company wants to see $300k liability coverage, but you may need $500k if you also want a separate umbrella policy. I had to raise the coverage on my vehicles as well.

Kelly