Landlord Insurance

Property investments are a great way to earn additional income for your family or business, but protecting yourself and your investment is the key. The policy to do this with is called a Dwelling Fire or Landlord policy. There are several different levels of these types of policies, but here at the Lindenwood Agency, we like to sit down with our customers and put together the best program for your needs. Dwelling Fire policies are very similar to homeowner policies, except not as comprehensive. Landlord policies can be owner occupied, but the majority of them are for tenants. The key to these policies is protecting the landlord or owner of the property. 

 

Levels of Insurance Coverage

• DP1: This form of dwelling fire policy is the most basic form. The DP1 is a named peril policy that provides just a few basic coverages. In case of a loss, for coverage to be provided the loss must be covered under these named perils. Another key factor with DP1 dwelling fire insurance is that the coverage is based on an Actual Cash Value level. 

 

• DP2: This form of dwelling fire policy is similar to a DP1, except it’s on a broad named perils basis. In essence, it names the perils, but the list of covered exposures is more inclusive than that of the DP1. Also, this coverage is on a replacement cost basis. 

 

• DP3: This form of a dwelling fire policy is the most comprehensive policy for a landlord. This policy offers the most possible protection for the landlord. This type of dwelling fire policy is on an open peril coverage basis. The only way a loss would not be covered under this policy is if it is listed under the exclusions portion of the policy. This policy is also a replacement cost policy which provides much more coverage than that of an actual cash value policy. 

 

Important Features

• Dwelling Coverage- This coverage is designed to repair or rebuild the physical home in the event of a loss. Common causes of loss are tornados, hail, or fire. 

 

• Liability Coverage- This coverage is designed to protect you and your assets if someone is injured or their property is damaged and it’s your fault. When choosing your coverage level, it’s important to remember the assets you need to protect in case someone decides to sue you. 

 

• Medical Coverage- This coverage is in place to cover medical expenses of a guest that is on your property should they be injured. 

• Contents- Your rental home is full of your belongings, ranging from clothing to expensive televisions and furniture. In the event of a theft, fire, or any other covered loss, this coverage will replace your lost or destroyed items depending on the form of policy that is written.

 

• Loss of Rents- Landlords depend on rental income for their properties. This coverage provides the loss of renters in case there is a loss and the dwelling is not livable. Generally this coverage will pay out until the dwelling is able to be inhabited again.