Insuring Your Rental Property: A How-To Guide

Protecting Your Investment: Why Rental Property Insurance Matters

Home insurance for rental property is a specialized type of coverage designed specifically for landlords and property investors. Unlike standard homeowners insurance, it addresses the unique risks associated with renting out your property.

If you're a property owner who has decided to rent out your home, you're entering a different risk category. Whether you're renting out a second home, an investment property, or even converting your primary residence into a rental, standard homeowners insurance won't provide adequate protection.

"Carrying standard homeowners insurance on a rental property is not advised — a homeowners policy assumes your home is owner-occupied and is not structured to cover the heightened risk involved in renting out your property."

Landlord insurance (also called rental dwelling insurance or rental property insurance) protects your investment from property damage, liability claims, and even loss of rental income if your property becomes uninhabitable due to a covered event.

Why is this coverage essential? As a landlord, you face additional risks that homeowners don't encounter. Tenants may accidentally damage your property. Visitors could be injured on the premises. A fire or storm might render your property uninhabitable, cutting off your rental income stream. The right insurance policy helps manage these risks and protects your financial investment.

In this guide, we'll walk you through everything you need to know about insuring your rental property properly – from understanding coverage options to finding the right policy for your specific needs.

Understanding Home Insurance for Rental Property

When you make the shift from homeowner to landlord, your insurance needs undergo a significant change. Home insurance for rental property – commonly known as landlord insurance – is specifically designed to address the unique risks that come with renting your property to others.

Landlord insurance protects the physical structure of your rental property, certain personal property you keep on-site (like appliances or maintenance equipment), provides liability coverage for tenant-related incidents, and safeguards against loss of rental income if your property becomes uninhabitable due to a covered event.

At W.E. Davis Insurance Agency, we've guided countless property owners throughout Columbus, Ohio and across the state through the transition from homeowner to landlord. With over 50 years of experience, we truly understand the distinctive challenges and risks that rental properties present.

Differences Between Homeowners Insurance and Home Insurance for Rental Property

The fundamental difference between these two types of insurance comes down to who lives in the property. Homeowners insurance is created for owner-occupied homes, while home insurance for rental property is custom specifically for properties occupied by tenants rather than owners.

Here's a detailed breakdown of the key differences:

"If you're renting out your property, you face different and higher risks for loss. Not having the correct coverage might be costly, as you could be responsible for any related medical bills, legal fees or property damages that occur."

This explains why standard homeowners policies typically exclude rental activities or severely restrict coverage when a property is being rented. If you're using your property as a rental while relying on a standard homeowners policy, you might find significant gaps in your coverage when you need it most.

Standard homeowners insurance typically does not cover damage when the property is used as a rental. This crucial fact catches many first-time landlords by surprise. The moment you hand over the keys to a tenant, your risk profile changes in the eyes of insurance companies.

Why Specialized Rental Property Insurance Is Essential

Turning your property into a rental opens up a whole new world of opportunities—and risks. At W.E. Davis Insurance Agency, we've seen how the right insurance coverage can make all the difference between a profitable investment and a financial nightmare. Let's talk about why specialized coverage isn't just a good idea—it's essential for protecting your rental property investment.

Why Is Landlord Insurance More Expensive Than Homeowners Insurance?

"Why am I paying more for my rental property insurance?" This is a question we hear often from new landlords in Columbus and throughout Ohio. The answer is straightforward: it's all about risk.

Insurance companies know that rental properties face different challenges than owner-occupied homes. This increased risk translates to higher premiums—typically about 25% more than standard homeowners insurance. With the average homeowners policy costing around $1,754 annually, landlord insurance averages approximately $2,192 per year. Latest research on landlord insurance costs

But what exactly drives this price difference? When tenants occupy your property, there's simply more that can go wrong. They might not maintain the property with the same care you would. They have visitors you don't know. And unlike your own home, you're not there daily to spot small problems before they become big ones.

In our over 50 years of helping Ohio property owners, we've noticed that rental properties typically experience more claims, and those claims tend to be more complex. When your rental sits vacant between tenants, it's also more vulnerable to vandalism and undetected maintenance issues that can spiral into costly repairs.

Plus, landlord policies include something vital that homeowners policies don't: protection for your rental income stream. If a fire or storm damages your property and your tenants need to move out during repairs, that coverage can be a financial lifesaver.

Benefits of Having Landlord Insurance

The peace of mind that comes with proper home insurance for rental property is truly invaluable. Beyond just sleeping better at night, here's what landlord insurance offers:

Property protection goes beyond the basics to address rental-specific scenarios. When a tenant accidentally starts a kitchen fire or a pipe bursts during a winter vacancy, your policy responds to these covered perils with the understanding that this is an investment property.

Liability coverage becomes even more crucial when you're a landlord. If a tenant's child falls down the stairs or a delivery person slips on an icy walkway, you could be held legally responsible. Your landlord policy provides a crucial layer of protection for these situations.

Loss of rental income coverage might be the most underappreciated benefit until you need it. Just last winter, one of our Columbus clients experienced a major pipe burst in their duplex. Not only did their landlord policy cover the extensive water damage, but it also replaced three months of lost rental income while repairs were completed—saving them over $3,000.

Financial security extends beyond just the property itself. Without proper coverage, a major claim could force you to dip into personal savings or even sell other assets to cover costs. Landlord insurance creates a financial firewall between your rental business and your personal finances.

As a family-owned agency that's been protecting Ohio property owners for over 50 years, we've seen how proper insurance has saved our clients from significant financial setbacks. The slightly higher premium for specialized rental property insurance is a small price to pay compared to what you might lose without it.

Standard homeowners insurance simply isn't designed for rental scenarios. The policy language specifically excludes or severely limits coverage when you're renting to others. Trying to save money by keeping your homeowners policy on a rental property is one of the costliest mistakes we see new landlords make.

Types of Coverage Included in Landlord Insurance

When you invest in home insurance for rental property, you're protecting much more than just the physical structure. A comprehensive landlord policy includes several crucial coverages that work together to safeguard your investment. Let's walk through what's typically included in a quality landlord insurance policy.

Dwelling Coverage

This is the heart of your landlord policy. Dwelling coverage protects the actual building structure against a wide range of perils that could damage your rental property. This includes protection against fire and smoke damage, lightning strikes, windstorms, hail, explosions, and even vandalism in most policies.

If a severe thunderstorm tears through Columbus and damages your rental's roof, dwelling coverage would help pay for repairs. At W.E. Davis Insurance Agency, we always recommend insuring your property for its full replacement cost – not just its market value or what you paid for it. This ensures you have enough coverage to rebuild completely if disaster strikes.

Liability Coverage

As a landlord, you face unique liability risks that homeowners don't. What happens if a tenant slips on icy steps or a visitor trips on a loose floorboard? Liability coverage steps in to protect you from legal expenses and potential settlements if someone is injured on your property.

This coverage also extends to situations like wrongful eviction claims or property damage that affects neighboring properties. While most policies start with $100,000 in liability coverage, we typically recommend our Columbus clients carry at least $300,000 to $500,000 for adequate protection. If you own multiple properties, adding an umbrella policy provides an extra layer of security.

Loss-of-Rent Coverage

One of the most valuable aspects of home insurance for rental property is loss-of-rent coverage (sometimes called "fair rental value"). This protection reimburses you when your rental income stops because your property becomes uninhabitable due to a covered loss.

For instance, if a kitchen fire makes your rental unit unlivable for three months during repairs, and you normally collect $1,500 monthly in rent, this coverage could provide up to $4,500 to replace that lost income. This protection helps ensure your investment continues to "pay you" even when tenants can't live there.

How Does Loss-of-Rent Coverage Work?

Loss-of-rent coverage kicks in when your property can't be rented because of damage from a covered event. Here's a real-world example we saw with one of our Columbus clients: A pipe burst during winter, causing extensive water damage throughout their rental property. Not only did their landlord policy cover the repairs, but it also compensated them for three months of lost rental income – saving them over $3,000 while repairs were completed.

This coverage doesn't apply to all situations where you might lose rental income. It won't help with vacancies between tenants, non-payment of rent, or minor damage that doesn't make the property uninhabitable. We take time to explain these distinctions to our clients so they fully understand their protection.

Protecting Against Tenant-Related Damages

One of landlords' biggest worries is damage caused by tenants. While not all tenant-related damages are covered, home insurance for rental property does provide important protections in many scenarios.

Your policy typically covers accidental damage caused by tenants – like an overflowing bathtub that damages floors or a cooking fire that spreads beyond the stove. However, it generally won't cover intentional damage, normal wear and tear, or theft of your property by tenants.

To better protect yourself, collect an adequate security deposit before tenants move in. This serves as your first line of defense against minor damages. Conducting thorough tenant screening is equally important – good tenants are your best insurance policy! Regular property inspections also help catch small issues before they become major problems.

We strongly recommend requiring tenants to obtain renters insurance. This provides liability coverage for them and protects their personal belongings (which aren't covered under your policy). As an added benefit, tenants with renters insurance are often more responsible overall.

Other Structures Coverage

Don't forget about the other structures on your rental property! This coverage protects detached garages, storage sheds, fences, and similar structures that aren't attached to the main dwelling. If a storm knocks down the fence around your rental property, this coverage would help pay for repairs.

Personal Property Coverage

Unlike homeowners insurance, landlord policies only cover personal property that you own and keep on-site for property maintenance or tenant use. This includes appliances, lawn equipment, and furniture in furnished rentals. Your tenants' personal belongings are not covered – that's why encouraging renters insurance is so important.

Additional Optional Coverages

Depending on your specific rental property and location, you might consider valuable add-ons to your policy:

Vandalism coverage provides extra protection in certain neighborhoods. Ordinance or law coverage helps pay for required code upgrades during repairs – particularly important for older properties in Columbus. Since standard policies don't cover flood damage, separate flood insurance might be essential depending on your property's location. Similarly, earthquake coverage could be important in areas prone to seismic activity.

With over 50 years of experience serving the Columbus area, we've helped countless landlords steer these coverage options to build the protection package that's right for their specific rental property needs. We understand that every rental property is unique, and we take the time to explain how each coverage works to protect your investment.

Common Exclusions in Landlord Insurance Policies

When you're investing in home insurance for rental property, knowing what's not covered is just as crucial as understanding what is. At W.E. Davis Insurance Agency, we've helped Columbus landlords steer these exclusions for over 80 years, and we've seen how surprised property owners can be when they find certain gaps in their coverage.

Your landlord insurance policy typically won't cover your tenant's personal belongings - that's what renters insurance is for. We always recommend encouraging (or even requiring) your tenants to obtain their own renters insurance policy to protect their possessions and provide additional liability coverage.

Intentional damage is another standard exclusion. If you deliberately cause damage to your own property, don't expect your insurance to cover it. This might seem obvious, but it's worth noting that insurance is designed for unexpected events, not planned ones.

One exclusion that catches many landlords off guard is normal wear and tear. Those scuffed floors, faded paint, and aging appliances? Those are considered maintenance issues, not insurable events. This is why it's important to budget for regular upkeep and renovations as part of your rental business plan.

Unwelcome visitors like termites, bed bugs, rodents, or other pest infestations typically aren't covered either. These issues fall under preventative maintenance and regular property management responsibilities.

Perhaps the most significant exclusions are flood damage and earthquake damage. Standard landlord policies simply don't cover these perils, and they require separate, specialized policies. Here in Ohio, we don't worry much about earthquakes, but flooding can be a real concern in certain areas, especially properties near rivers or in low-lying areas.

If you're renting out just a portion of your home while still living there, your situation falls into a gray area. These shared property situations often don't qualify for standard landlord policies and might require different coverage solutions.

Similarly, short-term rentals like vacation properties or Airbnb listings typically need specialized insurance rather than a standard landlord policy. The frequent turnover of guests creates different risk factors that require specific coverage.

Be aware that if your tenants run business activities from your rental property, related claims might be excluded. This is why it's important to clearly outline acceptable use of the property in your lease agreement.

Finally, most policies limit or exclude coverage if your property remains vacant for an extended period (typically 30-60 days). If you're between tenants for a while, you might need to look into vacancy coverage to maintain protection.

At W.E. Davis Insurance Agency, we take the time to review these exclusions with our Columbus clients and recommend additional coverages when needed. We believe in being transparent about these limitations upfront, so you're never caught off guard when you need to file a claim. Our goal is to make sure you understand exactly what you're getting – and what you're not – with your home insurance for rental property.

Is Landlord Insurance Required by Law?

Unlike auto insurance, home insurance for rental property isn't legally mandated in Ohio or most other states. However, before you decide to skip this coverage, there are several important factors to consider that might make it effectively required for your situation.

Mortgage Lender Requirements

If you have a mortgage on your rental property, your lender will almost certainly require you to maintain adequate insurance coverage. This isn't optional – it's typically written into your mortgage agreement. When you convert a property from owner-occupied to a rental, you must inform both your lender and insurance company about this change in use.

Your mortgage lender has a financial interest in protecting the property that secures your loan. From their perspective, a rental property represents a different risk profile than an owner-occupied home, and they want to ensure their investment is protected with the appropriate coverage.

Condominium or HOA Requirements

Own a condo or property within a homeowners association? The rules might require specific insurance coverage for rental units. These organizations often establish minimum liability limits and may have additional requirements beyond what a standard landlord policy includes.

We've worked with many Columbus property owners who finded their HOA had specific insurance requirements for rental units only after they'd already found tenants. It's always better to check these requirements before you begin renting out your property.

Legal Liability Considerations

While not technically required by law, operating without proper landlord insurance exposes you to significant legal and financial risks. If a tenant or visitor is injured on your property and you don't have adequate liability coverage, your personal assets could be at risk in a lawsuit.

Think of landlord insurance as a financial shield. Without it, a single accident on your property could potentially cost you your savings, investments, or even your primary residence if you're found liable for damages that exceed your ability to pay out of pocket.

Practical Requirements

After over 50 years of serving Columbus property owners, we at W.E. Davis Insurance Agency strongly recommend landlord insurance as a practical necessity for anyone renting out property. The relatively small additional cost compared to homeowners insurance provides essential protections that could save you from catastrophic financial loss.

One of our clients initially decided to save money by not updating to a landlord policy when renting out their former home. Unfortunately, when a tree fell and damaged the roof during a storm, they finded their homeowners policy wouldn't cover the claim because the property was being used as a rental. What would have been a covered $15,000 repair became an out-of-pocket expense that far exceeded what they would have paid for proper coverage.

Special Considerations for Ohio Landlords

Ohio has specific landlord-tenant laws that outline your responsibilities for maintaining safe, habitable properties. While these laws don't mandate insurance, they do create liability exposures that make proper insurance coverage essential.

For example, if your rental property has safety issues that you fail to address, and a tenant is injured as a result, you could face significant liability. Proper landlord insurance helps protect you from these risks, but it doesn't eliminate your responsibility to maintain safe premises.

We've helped countless Ohio landlords steer these requirements, ensuring they have the right coverage to protect their investment while complying with all applicable regulations. While not legally required, home insurance for rental property provides peace of mind that's well worth the investment for any serious property owner.

Factors Influencing the Cost of Landlord Insurance

When you're shopping for home insurance for rental property, you might experience a bit of sticker shock compared to your previous homeowners policy. At W.E. Davis Insurance Agency, we often walk our Columbus clients through why their premiums look the way they do. Understanding these factors can help you make smarter coverage decisions and potentially find ways to save money without sacrificing protection.

Property Location

Where your rental property sits on the map plays a huge role in what you'll pay. It's simple, really – some locations carry more risk than others.

In our decades serving Columbus property owners, we've seen significant premium variations between neighborhoods just a few miles apart. Your rates might be higher if your property is in an area with liftd crime statistics, or lower if you're near a fire station with quick response times.

Weather patterns matter too. Some parts of Ohio see more severe storms or tornado activity than others, and insurance companies have detailed data on these patterns. And if your property sits in a designated flood zone? That's a whole other conversation (and potentially a separate policy).

Property Age and Condition

Insurance companies love newer properties – they typically have updated electrical systems, modern plumbing, and construction that meets current building codes. These factors reduce the likelihood of certain claims.

Older properties often come with charming features but also higher premiums. That century home with the original knob-and-tube wiring? It's beautiful, but it's also a potential fire hazard in the eyes of insurers.

Good news though: If you've renovated your older rental property with updated systems, a new roof, or modern HVAC, let us know! These improvements can often lead to premium reductions since they lower the risk profile of your property.

Coverage Limits and Deductibles

This one's straightforward – the more coverage you want, the more you'll pay. But finding the right balance is key.

Higher coverage limits mean better protection but higher premiums. If your rental property would cost $300,000 to rebuild, insuring it for $200,000 might save you money now but could leave you financially exposed after a major loss.

Deductible choices work in the opposite direction – higher deductibles mean lower premiums. If you can comfortably handle paying $2,500 out-of-pocket for a claim instead of $1,000, you might see meaningful premium savings. Just make sure you actually have that deductible amount available if needed!

Property Type and Construction

The physical characteristics of your rental property significantly impact your insurance costs. A brick building generally costs less to insure than a wood-frame structure because it's more resistant to fire. A single-family home typically presents different risks than a four-unit apartment building.

Special features affect pricing too. That swimming pool might be a great selling point for attracting tenants, but it also represents what insurance folks call an "attractive nuisance" – something that increases liability exposure and, consequently, your premium.

Claims History

Your track record matters. If you've filed multiple claims on your rental properties in recent years, insurers may view you as higher risk and charge accordingly.

On the flip side, many insurance companies offer "claims-free discounts" if you've gone several years without filing a claim. At W.E. Davis Insurance Agency, we help our clients understand when it makes financial sense to file a claim versus handling smaller issues out-of-pocket to maintain those valuable discounts.

Security and Safety Features

Here's where you can potentially lower your premiums with smart investments. Insurance companies love features that reduce risk, and they're often willing to reward you for them.

Installing smoke detectors, carbon monoxide detectors, and fire extinguishers not only protects your property and tenants but can also earn you discounts. The same goes for security systems, deadbolts, and exterior lighting. Some companies even offer discounts for water leak detection systems that can prevent costly water damage claims.

Number of Units and Occupancy

How your property is occupied and managed affects its risk profile. Properties with frequent tenant turnover generally present more risk than those with long-term, stable tenants. Professional property management might earn you a discount with some insurers who believe professional managers maintain properties better and screen tenants more thoroughly.

With over 80 years of experience helping Columbus property owners protect their investments, we at W.E. Davis Insurance Agency understand the local rental market and insurance landscape. We can help you steer these factors to find the right coverage at a fair price. The cheapest policy isn't always the best value – it's about finding the right protection for your specific rental property situation.

How to Choose the Right Home Insurance for Your Rental Property

Finding the perfect home insurance for rental property doesn't have to be overwhelming. With a thoughtful approach and the right guidance, you can secure coverage that protects your investment without breaking the bank. Let's walk through the process together.

1. Assess Your Property's Specific Needs

Before shopping for insurance, take a moment to evaluate what makes your rental property unique. Consider the actual replacement cost of your property—not just its market value. This is what you'd need to rebuild from scratch if disaster struck.

Think about any special features your property might have, like a vintage fireplace or custom woodwork. These elements might require additional coverage. Also consider local risks that might affect your property. Here in Columbus, we see everything from severe thunderstorms to occasional tornado warnings, each presenting different insurance considerations.

Whether you offer a furnished or unfurnished rental also matters significantly for your coverage needs. Furnished properties require additional personal property coverage for the items you provide to tenants.

2. Understand the Different Policy Types

Landlord policies typically come in three main varieties, each offering different levels of protection:

DP-1 policies provide basic coverage for specifically named perils and typically pay actual cash value (which accounts for depreciation). These are the most affordable but offer the least protection.

DP-2 policies offer broader coverage for named perils and usually pay replacement cost rather than actual cash value. This middle-ground option works well for many landlords.

DP-3 policies provide comprehensive coverage for all perils except those specifically excluded in the policy. For most rental property owners, we recommend this option for its superior protection, though your specific situation may warrant a different choice.

3. Determine Appropriate Coverage Limits

Setting the right coverage limits is crucial for proper protection. Your dwelling coverage should be sufficient to completely rebuild your property if it were destroyed. Many landlords underestimate this amount, leaving themselves vulnerable.

For liability protection, we typically recommend at least $300,000 to $500,000 in coverage. This protects you if someone is injured on your property or if you're sued for a covered incident related to your rental.

Your loss of rental income coverage should be enough to replace at least 12 months of lost rent if your property becomes uninhabitable after a covered event. This often-overlooked coverage can be a financial lifesaver during extended repairs.

Don't forget about personal property coverage for any maintenance equipment, appliances, or furnished items you keep at the rental. This isn't for tenant belongings, but rather your own property used to service the rental.

4. Evaluate Optional Coverages

Depending on your property's unique characteristics, you might want to consider additional protections:

Flood insurance is essential if your property is in or near a flood zone, as standard policies exclude flood damage. Even properties in low-risk areas can experience flooding, and the damage can be devastating.

If you're in an area with seismic activity, earthquake coverage might be worth considering, as this is also excluded from standard policies.

For older properties, ordinance or law coverage (also called building code coverage) helps pay for the increased costs of bringing your property up to current building codes during repairs after a covered loss.

In some neighborhoods, additional vandalism coverage provides extra peace of mind against property damage.

5. Compare Multiple Quotes

One of the advantages of working with W.E. Davis Insurance Agency is our ability to shop multiple insurance carriers on your behalf. As an independent agency, we're not tied to just one company's products. We can compare options from different insurers to find the best combination of coverage and value specifically for your rental property.

When comparing quotes, look beyond just the bottom-line premium. Consider coverage limits, deductibles, exclusions, and the financial strength of the insurance company.

6. Look Beyond Price

While finding affordable coverage is important, the cheapest policy isn't always the best value. Consider these additional factors:

The insurer's financial stability and ratings indicate their ability to pay claims when needed. Agencies like A.M. Best provide ratings that can help you evaluate an insurer's financial health.

An insurer's claims handling reputation matters tremendously when you actually need to use your policy. A company that processes claims efficiently and fairly is worth paying a bit more for.

Customer service quality becomes extremely important when you have questions or need to make policy changes. Working with a local agency like ours means you'll always have someone familiar with your situation to help.

Always review policy exclusions and limitations carefully. Sometimes a slightly higher premium buys significantly better coverage with fewer exclusions.

7. Review Regularly

Your insurance needs will evolve as your rental property situation changes. We recommend reviewing your coverage annually or whenever significant changes occur, such as:

• Property improvements or renovations that increase your property's value• Changes in tenant situations or rental arrangements• Acquisition of additional rental properties• Significant changes in the neighborhood or local property values

As Columbus, Ohio's trusted insurance advisors for over 50 years, we understand the local rental market and insurance landscape. Our family-owned agency brings decades of experience to help you steer the complexities of landlord insurance and find the perfect coverage for your investment.

Encouraging Tenants to Get Renters Insurance

While home insurance for rental property protects your investment, it doesn't cover your tenants' personal belongings or their personal liability. Smart landlords encourage—or even require—tenants to obtain their own renters insurance.

When tenants have renters insurance, they're more likely to file claims with their own insurer rather than pursuing claims against you. This can significantly reduce your liability exposure. In some cases, a tenant's renters policy may even cover damage they accidentally cause to your property, saving you from filing a claim on your own policy.

Renters insurance can also prevent disputes between tenants. If one tenant's actions damage another tenant's property, having insurance provides a clear path to resolution that doesn't involve you as the landlord.

We've found that tenants willing to maintain insurance often demonstrate greater financial responsibility in other areas as well, making them better tenants overall.

To encourage renters insurance, consider making it a requirement in your lease agreement. Explain to tenants that these policies are quite affordable—typically just $15-20 per month—and protect their belongings from theft, fire, and other perils. Many renters don't realize how inexpensive this valuable coverage is.

At W.E. Davis Insurance Agency, we can provide informational materials about renters insurance that you can share with your tenants, helping them understand its importance without specifically endorsing any particular company.

Additional Coverages to Consider

Beyond standard landlord insurance, several supplemental coverages might improve your protection:

An umbrella liability policy provides extended protection beyond the limits of your landlord policy. For rental property owners, especially those with multiple properties or substantial assets, an umbrella policy offering $1 million or more in additional liability coverage can provide crucial protection against major lawsuits.

Standard landlord policies exclude flood damage, making separate flood insurance essential for properties in or near flood zones. Even properties in low-risk areas can experience flooding, and just one inch of floodwater can cause significant damage to flooring, walls, and electrical systems.

Like flood damage, earthquake coverage requires a separate policy or endorsement, as standard policies exclude this peril. In areas with any history of seismic activity, this coverage warrants consideration.

For older rental properties, building code coverage (also called "ordinance or law" coverage) helps pay for the increased costs of bringing your property up to current building codes during repairs. Without this coverage, you might face significant out-of-pocket expenses even after a covered claim.

Some insurers offer guaranteed income insurance that protects against lost rental income due to tenant non-payment. This differs from the standard loss-of-rent coverage included in most landlord policies, which only applies when the property is uninhabitable due to a covered loss.

If you rent your property furnished, a landlord furnishings endorsement provides additional coverage for furniture, appliances, and other items you provide for tenant use.

At W.E. Davis Insurance Agency, we're happy to help you evaluate which of these additional coverages make sense for your specific rental property situation. With our decades of experience serving Columbus property owners, we understand the unique challenges local landlords face and can recommend custom solutions for your needs.

Frequently Asked Questions about Home Insurance for Rental Property

Does Homeowners Insurance Cover Rental Properties?

No, standard homeowners insurance typically does not cover rental properties. This is one of the most common misconceptions we encounter at W.E. Davis Insurance Agency. Homeowners insurance is specifically designed for owner-occupied properties and generally excludes or severely limits coverage when you're renting out your property to others.

If you're renting out your property for most of the year, you absolutely need a landlord policy (also called home insurance for rental property). For occasional or very short-term rentals, you might be able to add an endorsement to your existing homeowners policy, but this is something you should discuss with your insurance agent before making assumptions about your coverage.

I remember working with a client here in Columbus who had converted their family home into a rental property. They initially thought their existing homeowners policy would provide adequate protection. Had they not consulted with us first, they would have been completely unprotected when a tenant's bathtub overflow caused significant water damage throughout the home. Fortunately, we had helped them obtain proper landlord coverage before the incident occurred, saving them thousands of dollars in out-of-pocket repairs.

How Does Landlord Insurance Protect Against Tenant-Related Damages?

Landlord insurance provides several important layers of protection when it comes to tenant-related issues. Think of it as a safety net specifically designed for the unique risks that come with having others live in your property.

First, your policy includes property damage coverage that protects against accidental damage caused by tenants. This might include situations like a cooking fire that damages the kitchen or an overflowing toilet that ruins your flooring.

Second, liability protection is a crucial component that covers you if a tenant or their guest is injured on your property and you're found legally responsible. This coverage can handle medical expenses, legal fees, and potential settlements that might otherwise come directly from your pocket.

Third, if tenant-caused damage (that's covered under your policy) makes your property uninhabitable, your loss of rental income coverage can reimburse you for the rent you're missing while repairs are being completed.

However, it's important to understand what landlord insurance typically doesn't cover. This includes intentional damage by tenants, normal wear and tear, your tenant's personal belongings, or damage resulting from neglected maintenance issues. That's why we recommend complementing your insurance with thorough tenant screening, regular property inspections, detailed documentation of property condition, adequate security deposits, and requiring tenants to obtain their own renters insurance.

What Additional Coverages Can Be Added to a Landlord Insurance Policy?

Your basic landlord policy provides essential protection, but depending on your specific situation, you might benefit from additional coverages that can be added to your policy. At W.E. Davis Insurance Agency, we help our clients determine which of these make sense for their particular rental properties:

Vandalism and Malicious Mischief Coverage is included in many policies, but some basic policies exclude this protection. If you're concerned about intentional damage to your property, make sure this coverage is included or added.

If you've furnished your rental with appliances or keep maintenance equipment on site, Theft Coverage can protect these items if they're stolen from your property.

One coverage that many landlords don't think about until they need it is Water Backup Coverage. Standard policies typically exclude damage from sewer or drain backups, which can be particularly devastating and expensive to repair.

For older properties, Ordinance or Law Coverage is worth considering. This pays for increased costs to repair or rebuild your property to current building codes after a covered loss – something that can significantly increase repair costs.

With construction costs constantly rising, Inflation Guard automatically increases your coverage limits to help keep pace with these changes, ensuring you're not underinsured if disaster strikes.

For landlords who provide appliances, Equipment Breakdown Coverage can cover repair or replacement of systems and appliances due to mechanical or electrical failure, not just damage from covered perils.

Some policies even offer optional Identity Theft Protection for property owners, which can be valuable in today's digital world.

And don't forget that standard policies exclude flood and earthquake damage, so separate Flood or Earthquake Insurance policies may be necessary depending on your property's location.

After over 50 years of helping Columbus property owners protect their investments, we've learned that the right combination of coverages makes all the difference when the unexpected happens. We're always happy to review your current coverage and suggest adjustments based on your specific needs and concerns.

Conclusion

Investing in rental property can be a rewarding financial strategy, but it comes with unique risks that require specialized insurance protection. Home insurance for rental property – commonly called landlord insurance – provides the comprehensive coverage you need to protect your investment, your income, and your financial future.

As we've explored throughout this guide, standard homeowners insurance simply isn't designed to address the specific risks landlords face. From property damage and liability claims to loss of rental income, landlord insurance offers custom protection that gives you peace of mind and financial security.

When you're entrusting your valuable property to tenants, having the right insurance isn't just a good idea – it's essential. The relatively small premium difference between homeowners and landlord insurance (about 25% more) pays for itself many times over when you consider the potential financial losses you could face without proper coverage.

Your rental property isn't just a building – it's an income stream and a significant financial investment. Protecting it properly means having coverage that addresses all aspects of your risk as a landlord, from the physical structure to liability concerns to potential income interruption.

At W.E. Davis Insurance Agency, we've been helping Columbus, Ohio property owners protect their investments for over 50 years. Our family-owned business understands the local rental market and the unique challenges landlords face. We've seen how proper insurance has saved our clients from devastating financial losses after unexpected events – from kitchen fires to liability lawsuits to extended property repairs.

Whether you're renting out a single-family home, a duplex, or multiple properties, we can help you steer the complexities of landlord insurance and find a policy that meets your specific needs. Our team takes the time to understand your situation, explain your options in clear language, and help you make informed decisions about protecting your valuable investment.

Don't leave your rental property's future to chance. Contact W.E. Davis Insurance Agency today to discuss your home insurance for rental property needs and find how we can help you secure the perfect coverage for your situation. With the right protection in place, you can enjoy the benefits of property ownership with confidence, knowing you're prepared for whatever challenges may arise.