Insurance Policies Every Landlord Should Have

Owning property is a valuable investment, but it comes with risks. Whether it’s unexpected property damage, legal disputes, or tenant-related issues, landlords must be prepared for any scenario. Having the right insurance coverage in place can protect your investment and provide peace of mind. These are the essential insurance policies every landlord should have:


1. Landlord Property Insurance

This policy covers the structure of your rental property against damages caused by events such as fire, storms, and vandalism. Unlike standard homeowner’s insurance, landlord property insurance is specifically designed for rental properties.

Key Coverage Areas: Building structure, detached structures (garages, sheds, etc.), some types of personal property (appliances provided by the landlord).


2. Liability Insurance

Liability insurance protects you if a tenant or visitor is injured on your property and decides to sue. Without this coverage, you could be responsible for hefty legal and medical expenses.

What It Covers: Legal fees, medical costs, and settlements or judgments.


3. Loss of Rental Income Insurance

If your property becomes uninhabitable due to a covered event (ex: fire or flood), loss of rental income insurance compensates you for the rent you would have collected during the downtime.

When It’s Useful: During extensive repairs after a fire or storm. If a major plumbing issue forces tenants to move out temporarily.


4. Flood Insurance

Standard landlord property insurance doesn’t typically cover flood damage. If your property is in a flood-prone area, having a separate flood insurance policy is essential.

Covered Events: Natural flooding from heavy rains or overflowing rivers. Water damage directly caused by floods.


5. Umbrella Insurance

Umbrella insurance provides additional liability coverage beyond the limits of your standard liability policy. It’s especially useful if you own multiple properties or higher-value assets.

Additional Benefits: Extra protection against large claims. Coverage for situations not included in standard liability policies.


6. Workers’ Compensation Insurance (If You Employ Staff)

If you employ maintenance staff or other workers for your property, workers’ compensation insurance is required by law in most states. This policy covers medical expenses and lost wages if an employee gets injured on the job.

Covered Situations: On-site injuries, rehabilitation costs, and lost wages.


7. Tenant Rent Guarantee Insurance

This lesser-known policy helps protect landlords from losses due to tenants defaulting on rent payments. It’s especially valuable in uncertain economic times.

How It Helps: Covers lost rent if tenants can’t pay and reduces financial risk during tenant turnover.



Owning rental property can be rewarding, but it comes with inherent risks. By securing the right insurance policies, landlords can safeguard their investments and ensure long-term success. At Delkap Management, we understand the complexities of property ownership and work with landlords to minimize risks and maximize returns. Need help managing your property or navigating insurance options? Contact us today at 718-848-6488.

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