Landlord policies specifically tailor coverage to your exposure while renting your property to others. Often referred to as a Lessor’s Risk Only (LRO) policy, these policies cover your liability as a landlord and will often allow you to add building coverage similar to a Business Owner’s Policy.
Whether you’re the landlord of a small multifamily, own a large commercial building or a homeowner’s association we have you covered. Your real estate business can take many shapes and your risk planning and coverage should be as unique as the property you own. With real estate insurance packages designed to meet the changing needs of your business we offer the flexibility to adapt coverage to your needs.
Short Term Rentals through platforms such as Airbnb, Vrbo, Homestay and others have become increasingly popular and insurance policies have evolved to meet the unique needs of full and part time landlords. Contact us to learn more about your options.
If you’re a Real Estate Agent or Broker you may be interested in a Business Owner’s Policy designed for realtors.
Landlord Insurance vs Homeowners Insurance
This can be a tricky topic – the short version is this: If you own a property that you rent out 100% of the time then you will not be eligible for a homeowners policy. As the name suggests, a homeowners policy is meant for your home. Where the topic gets more interesting is when we talk about an owner temporarily renting out there home, such as during a major sporting event. In this case you must review your homeowners policy carefully. Some insurance companies will allow periodic short term rentals while others will not. The allowed number of times rented and length of stays may vary from company to company so it’s important to review your plans with your agent to determine which policy is the right fit for you.
Frequently Asked Questions
What is typically covered on a landlord policy?
Landlord policies are flexible and typically provide the option to add various coverages as needed. Most landlords will require coverage for the building, owned property and liability. It’s important to discuss your scenario with a licensed insurance agent to identify which coverages are important for you.
Will my policy cover short term rentals?
It depends, some insurance companies do not extend coverage for short term rentals, as is common with home sharing apps. It is important to specifically request this coverage to ensure your policy will provide it. When in doubt, contact us to review your policy and rental procedures to determine the fit. There are many options out there for short term rentals.
Doesn’t my short term rental app provide insurance for me?
Some rental apps (like airbnb) do provide some insurance coverage included in the price of using the platform. Aircover for hosts is good example of this. It’s important to understand that this insurance is not a replacement for your coverage as the property owner, it supplements your insurance. Aircover, for example, provides coverage if a guest damages your property, but it does not extend coverage when your property is vacant.
Key Coverages for Landlords and Short Term Rentals
Landlord & Lessors Risk
Also referred to as commercial auto, business auto can be very straightforward (insuring vehicles your company owns) but also confusing (i.e. using personal vehicles for business). While many of the coverages are similar to that on a personal auto policy, the limits and conditions can be very different and may vary based on the use of the vehicle.
We live in a digital world and most businesses, even those traditionally considered “offline” continue to have an increasing digital footprint. Technology brings incredible capabilities to our fingertips. Unfortunately, it also brings additional risk. Cyber coverage has become increasingly popular to mitigate the impact of data breaches, downed computers and networks and the losses that result.