What Kind of Insurance Do I Need for My Rental Property?

Landlord Insurance Near Me, Advocate Insurance, Murfreesboro

Owning a property, just like any asset, requires protection. There are inherent risks that come along, especially in the wake of national disasters.  This can be acts of nature like flooding, fire, and earthquakes. Otherwise, you could lose out your income stream when your property investment undergoes repairs.

Having an insurance policy mitigates your risk. However, there are many different kinds of insurance out there, and you should know which one is suitable for you. Below are different types of insurance that are useful for a property owner to consider:

Landlord Insurance

Landlord insurance is defined as a policy that provides property and liability protection for property owners that rent their property to tenants. This type of policy may also be known as dwelling fire insurance.

Landlord insurance is used in place of homeowners insurance and offers similar protections, helping the landlord recover from financial losses in the event of certain covered perils. There are many companies that offer landlord insurance policies out there. A comprehensive landlord insurance policy will encompass these three protections:

1.    Property Damage

This ensures that you can file a claim when a natural disaster strikes like fire, earthquake, and even electric/ gas malfunction. In case a tenant commits a violation by vandalizing your property, you can also file a claim.

2.    Lost Rental Income

If your property becomes uninhabitable due to fire or weather damage, you can receive compensation for lost rental income while your unit is being repaired and remains vacant.

3.    Liability Protection

If your tenant sustains an injury that resulted from property maintenance oversight such as structural damage, you can file for a claim to help you pay for medical expenses and avoid being sued by the tenant.



Umbrella Insurance

Umbrella insurance is defined as insurance that provides additional coverage over and above existing limits of underlying insurance policies. It can be protective insurance for injuries, property damage, select lawsuits, and personal liability cases. 

Umbrella insurance is useful since it can protect your home investment assets, providing extra layers of benefits that extend above your homeowners’ insurance. Other protection it provides includes claims on liability coverage on your rental units. 

Umbrella Insurance Near Me

For example, if your renter owns a dog that bit a neighbor that finds you responsible for the injuries he sustained, then you may need to use your umbrella insurance. Another example would be a tenant who complains and files a lawsuit against you when he stumbled on a sidewalk crack in your premises that resulted in an injury. If your existing liability limits are not enough, you can then make a claim on your umbrella insurance.

Renter’s Insurance

Renters Insurance Near Me

Renter’s insurance is an insurance that offers coverage for a tenant’s belongings, liabilities, and even living expenses in the event of a loss. This type can be availed to those renting in a single-family home, apartment, condo, etc. This type of insurance is very handy if injuries to a guest result while living in the property.  Outside a landlord’s negligence of structural problems in the property, the tenant can file for a liability claim on his renter’s policy. 

Most landlords require their tenants to get renter’s insurance, says Dawson Management. This is for the tenants’ protection, since a landlord is not liable for any losses or damage of a renter’s belongings. If a disaster occurs, a renter without insurance could stand to lose his valuable items without the property owner handing a single dime to the tenant. This is one of the primary reasons renter’s insurance is so vital.

Bottom Line 

As a landlord, it’s very important to know about the different kinds of insurance available. Knowing each insurance policy’s limitations will help you decide what type of insurance to buy. Don’t assume that standard home insurance will cover all you need for your rental property. Review each insurance policy and protect your assets. An extra layer of protection will help you gain peace of mind. 

Do I Really Need Renters Insurance?

Many renters think that because they pay monthly rent, everything is included, even insurance. This is simply not the case. Your landlord’s coverage only applies to the building, not all of your belongings. The landlord’s insurance also doesn’t cover you if someone injures themselves on the property and you are found liable. When you consider these two points, you can see the importance of purchasing renters insurance.

Renters Insurance Murfreesboro TN

What Does Renters Insurance Cover?

Renters insurance typically has two parts – liability and contents. Liability coverage is required by many landlords, especially apartment complexes. It usually ranges from $100,000 to $500,000 and provides you protection if someone sues you after being injured on the property.

Contents coverage is what protects your belongings. Everything that you move in on moving day is covered by this coverage. When considering the amount of your contents coverage, make sure that you consider high price items such as…

  • Jewelry
  • Designer clothing and shoes
  • Musical instruments
  • Art
  • Guns
  • Computer equipment
  • Memorabilia


I once had a client that only wanted $2000 in contents coverage. However, when I asked more questions, he had over $10,000 in guitars and a piano in his apartment. (It is Nashville!) This would have been a huge problem should a total loss have occurred. Remember those things add up when you are deciding on your contents amount.

How Much Does Renters Insurance Cost?

The best thing about renters insurance is that it is so inexpensive – usually less than $1 a day! Usually when you bundle with your auto insurance, you get a discount on both, making it even more affordable.

There is really no reason not to buy renters insurance. To compare your rate with multiple companies in Tennessee, give our office a call at 615-919-1009 or visit our website today!