Landlord protection insurance provides specialized coverage for owners of rental property. Since the insurance needs of landlords differ from those of regular homeowners, many insurance companies offer these specialized policies for investment property owners. Policies cover damage to multi-unit buildings as well as landlord-provided amenities and furnishings. In addition to liability and damage protection, landlord protection insurance may also offer other coverage, including lawsuits from disgruntled tenants who allege landlord-tenant law violations such as an inappropriate eviction or invasion of privacy.
Standard homeowner's insurance policies are typically not suited to the needs of landlords, particularly those who own buildings that house more than one rental unit. A typical landlord protection insurance policy covers multi-home buildings against damage caused by fire, some natural disasters, and vandalism. If a tenant, neighbor, or business visitor is injured in the building, the liability portion of the insurance may cover any losses. In situations where the landlord provides furnishings or appliances, landlord protection insurance may also offer coverage for these items. Landlord protection insurance does not, however, cover losses sustained by tenants. Renters' insurance, not landlord insurance, protects renters in case of a mishap.
In some places, such as the U.K., rent guarantee insurance is available. This is a form of landlord protection that recognizes the investment risks of landlording. If a tenant refuses to pay rent, this insurance can cover rent payments until the tenant can be evicted from the property. Without this insurance, a landlord may risk losing the property entirely if he does not have the income necessary to pay his mortgage.
Special circumstances faced by landlords may also include conflict with tenants. Some landlord protection insurance provides coverage for both a landlord and her partner or spouse from the fallout of landlord-tenant disputes. For example, a landlord may have to evict a tenant. This is typically a long and expensive court process. Landlord protection insurance may offer the landlord some coverage for the costs of an eviction. Similar coverage for medical bills and recovery time may be offered in cases where a tenant physically attacks the landlord. Other protections can include the coverage of court costs, judgments, and time off work in cases where a tenant sues a landlord for various reasons, including the accusation that a landlord entered the property when she shouldn't have, filed an improper eviction action against the tenant, or that the landlord has failed to maintain the property in accordance with local codes.
