What does landlord insurance cover?
An Allstate® Landlord Package Policy typically covers a range of perils, including the following:
- Fire and smoke
- Windstorm or hail
- Falling objects
- Water damage from plumbing, water heater or burst pipes (except sump pumps)
Here's a look at some of the coverages provided by a standard Allstate landlord insurance policy.
- Dwelling protection
Covers the rental property your tenants live in and other structures attached to it such as a garage, porch or deck.
- Other structures protection
Covers stand-alone garages, sheds and other buildings that are separate from your rental property.
- Liability coverage
Covers you if you're sued after an accident, damage or loss related to your property. For example, you might have a lawsuit on your hands if your tenant injures himself on broken stairs in your rental.
- Fair rental income coverage
Helps pay the rental income you would otherwise lose if your rental becomes uninhabitable due to a covered loss and your tenants have to move out. You can keep the money coming in for up to 12 months while the unit is being repaired or rebuilt.
- Premises medical protection
This type of coverage can help pay for reasonable and necessary medical expenses if someone is injured in an accident on your rental property.
Optional landlord insurance coverages
You may also choose to add optional coverages to your landlord insurance policy for even greater protection.
- Vandalism coverage
Covers costs to repair or replace damaged items if your rental is vandalized, as well as belongings used for the rental property. This coverage only applies if the dwelling has not been vacant or unoccupied for more than 90 consecutive days.
- Burglary coverage
In the event of a burglary, this covers costs for any repairs or replacements needed, in addition to belongings used for your rental property. This coverage only applies if the dwelling has not been vacant or unoccupied for more than 90 consecutive days and there is sign of visible forced entry.
- Rental property under construction coverage
If you’re renovating or building a new rental property, this covers the dwelling before it’s occupied.
- Building code coverage
This helps cover increased costs related to fixes needed after a covered loss, such as enforcing any building codes, ordinances or laws regulating construction, reconstruction, maintenance, repair or demolition of your rental property.
What’s not covered by landlord insurance?
Landlord coverage protects a rental property from accidental and sudden losses, but there are some losses it doesn’t cover.
- Breakdowns in the rental property
Most landlord insurance doesn’t cover basic maintenance repairs. For example, your coverage most likely won’t help replace your water heater if it cracks but might help pay for the damage to your floors.
- Personal property
The items your tenants own, such as clothing, electronics and other personal possessions, aren’t covered under most landlord policies. You may want to suggest your tenants buy Allstate renters insurance to cover their belongings in case of a loss. Also, the Landlords Package Policy typically doesn’t cover damage due to a tenant’s vandalism, unless you purchase additional vandalism coverage, and the damage is within the policy limit.
- Floods, earthquakes and water backup
Typically, most landlord coverages exclude floods, earthquakes and water (sewer) backups. You can buy flood insurance as a separate policy in addition to what a Landlords Package Policy covers.
Consider deductibles and limits
When you purchase a landlord insurance policy, you can select deductibles and coverage limits based on your needs.
Additional insurance policies to consider
While landlord insurance can help protect you in many situations, there are a few events that aren't typically covered. These additional policies can help safeguard against flood damage and expensive lawsuits. Learn more about:
- Flood insurance
This policy can cover the damage done to your rental properties by floods, which are the #1 natural disaster in the U.S.¹
- Personal umbrella insurance
Since owning multiple properties gives you more to lose in a major lawsuit, you may want the extra liability coverage personal umbrella insurance provides.