Landlord insurance provides landlords with compensation for any lost income that they may endure due to certain damages that prevent them from performing rent collection. Insurance for landlords is a very unique type of insurance contract. It is created for landlords who own single structures that hold a maximum of four families. It provides them with different protection options that are not offered within the policies of standard homeowners. Properties that are constructed to hold at least four families are usually placed within the category of apartment buildings and they require a commercial policy. Landlords should consult their options with an insurance broker because the specific requirements might change from state to state.


Regarding coverage a landlord's policy will provide coverage to the structure against any damage done to the building. It will usually be set up the same way that a policy is constructed for a standard homeowner. The policy of the landlord will provide coverage for appliances, furniture, and any other items that they provide to the tenants to use. If the building becomes victim to damage that prevents the landlord for collecting rent during the time that the damage occurs than the policy will provide the landlord with money to compensate for the lost income. Landlord insurance policies also provide individuals with legal liability protection for certain injuries that may occur and also against landlord-tenant issues.


Landlord insurance policies are very useful, but they do have certain limitations. A landlord's policy will not provide coverage to their tenants' personal property. Because a landlord policy only provides coverage for the items that the landlord provides for his or her tenants to use their contents coverage will be smaller than what is found within a standard homeowner policy. Any personal property that is owned by the tenant has to be insured separately with a renters' insurance policy or another contract that is similar.


Insurance policies for landlords will offer a minimum of 2 different protection options that are not offered within standard homeowner policies. The first protection option is for lost income. The lost income will be replaced for the landlord for a maximum of one year. The second protection option that is provided in landlord insurance policies is for legal liability. This option will provide the landlord with protection against any legal battles that take place with the tenants.


When compared to the policies available to standard Hawaii homeowners, landlord insurance policies may cost around the same amount of money or may be a bit more expensive. The higher charge for a landlord policy can be attributed to the loss of income option as well as the legal protection option. It is advised that landlords discuss what their specific plans are for their property with an insurance professional so that they may construct the best policy to appropriately fit their needs.