If you rent a property to a tenant, then Rental Property Insurance is the most important insurance policy you can get. Whether you are leasing a room to a college student in your primary home, renting your whole home to seasonal tenants, or renting a secondary property year-round, Rental Property Insurance is necessary and appropriate, if you are the landlord. Whether you rent several properties in different locations, have a duplex or quadplex, a row of houses, a vacation home or an apartment complex, the last thing you need is to be worrying about your investment. A landlord can be liable for many things. If you don’t have coverage, your property is vulnerable to damages you’ll have to pay for out of your own pocket. Perhaps you think your homeowner’s insurance policy covers a room rental in your primary home. This is not necessarily true. Check your insurance policy and then call your agent to make sure. If you need it, you’ll find that Rental Property Insurance is very affordable!

If you need to get Rental Property Insurance — also known as a Dwelling Policy — consider the three options you are typically given. The first option is a basic Rental Property Insurance policy. It covers the usual things, like fire and vandalism. If you want more coverage than that, then consider a policy that covers “named perils.” Named perils might include damage from hail or a windstorm. Talk to your agent to learn what else might be covered. The most expensive and most comprehensive coverage you can get is Special Form or Open Peril Insurance. It pretty much covers everything you need coverage for, and will provide the most peace of mind. If you can afford it, get it!

Another insurance coverage you may want to consider is a Landlord Protection Policy. This type of policy is for non-commercial landlords who rent out a property they own, and which has up to four tenant-occupied units. A Landlord Protection Policy will cover you for equipment failures like boiler problems, furnace breakdowns, or central air conditioning system failures. It will also help cover other types of liability, like a wrongful eviction or wrongful entry claim.

You may want additional coverage for loss of rental income. For instance, what if a building you normally rent needs to be emptied for sudden or extensive repairs? Get Extended Dwelling Coverage. It provides a choice of two protection levels. The first is up to 25% more coverage than what is provided by your basic Rental Property Insurance. The second is up to 50% more coverage. Both help pay for any sudden need for repairs or rebuilding costs that would exceed the amount covered by your basic Landlord Protection Policy. The policy doesn’t cover lost rental income if a tenant skips town or is evicted.

Don’t forget to insist that your tenants get their own coverage to protect themselves from certain liabilities and losses.