Landlord insurance, also called rental insurance (not to be confused with renter’s insurance), is an insurance policy for individuals who rent their home(s) to a tenant. In this case, the homeowner’s primary insurance policy typically will not cover the home to the full extent. Landlord insurance provides the coverage necessary to properly protect the homeowner (landlord) from high costs related to property damage, theft and vandalism and more.
Of course, the specific coverages that are included depend upon the personalized policy. In Illinois, most landlord insurance covers the rental dwelling and other structure(s) on the property. Additional coverages are available as well. For example, it is possible to also obtain additional coverage for maintenance costs and equipment breakdowns.
Landlord insurance in Illinois also covers a wide range of risks for your rental property. It is important to understand the specific risks that your insurance policies cover. Specifically, the types of risks that are most commonly covered by landlord insurance include:
From a water pipe that has burst and leads to water damage, to costs associated with liability lawsuits, landlord insurance offers the necessary insurance coverage landlords need. You may have the option to choose a limited set of coverage options for a lower premium or deductible, or you can elect for additional risk coverage with higher insurance costs.
By doing so, you can help keep premium costs lower by not paying for coverages that you do not want or need. Landlord insurance can also give assurance to prospective tenants that the property currently is, and will be, maintained throughout the duration of their tenancy.
Landlord insurance is especially beneficial for Illinois residents as storm damage is more common than in other states as a result of heavy winds and rainfall throughout the year. Additionally, Illinois is home to some of the nation’s worst windstorms, hailstorms and tornadoes, and landlord insurance covers the damage costs associated with storms.
Landlord insurance is not required by law in Illinois; however, landlords and their businesses are at much greater financial risk without it. Building codes are also changing regularly in Illinois, and landlord insurance can help protect you financially if you are required to go through any necessary renovations to keep your property safe and code compliant.
Specifically, landlord insurance is recommended for anyone who rents their home, or multiple rental homes, to someone else. This could be someone that simply has two properties and wants to generate additional income from their second property, or a realty management group that manages or owns multiple properties.
Certain landlord insurance providers in Illinois may only offer coverage for certain types of properties, whereas other providers may have fewer restrictions. In general, the types of properties that are covered by landlord insurance are:
Landlord insurance typically covers long-term rental properties as well as short-term rentals such as properties that are listed on Airbnb.
To discuss landlord insurance in greater detail and to get started with your policy, give us a call or send us a message today. We are glad to answer your initial questions and concerns and personalize a policy for your landlord insurance needs.