If you own property that you rent out to tenants, you may want to consider the protection offered by landlord insurance. Landlord insurance usually covers two distinct areas--property and liability--to protect you from potential issues that may arise from irresponsible renters, crime, or natural disasters.
The property portion of landlord insurance safeguards your physical possessions such as the rental building itself, detached structures on the property, and personal items that are used to service the property (e.g., lawnmowers, snow shovels, or other tools). You can also add additional coverages to protect the property from vandalism or to pay for the replacement of stolen items.
The liability portion of landlord insurance protects you if you are found responsible for injuries or other damages to your tenants. For example, if someone hurts themselves on a broken appliance that your were required to fix, they could take you to court. In this situation, landlord insurance could help cover both the tenant’s medical expenses and your legal fees.