• Property coverage
• Loss of Income Coverage
Landlords make sizeable investments in the properties that they own, and it’s important to protect these investments. Landlord insurance gives landlords in Vermont a way to safeguard their properties from covered losses.
Landlord insurance is a special type of property insurance that’s designed to meet the unique needs of landlords. It may be used to insure single-family homes, condos, and multi-family units that are leased to tenants.
The coverages included in landlord policies are similar to those of homeowners policies, but they typically don’t offer quite the same protections.
The two primary coverages that landlord policies offer are landlord liability insurance coverage and property coverage. Landlord liability insurance coverage helps protect landlords from lawsuits that claim they’re responsible for injuries or property damage. Property coverage, depending on its terms and conditions, may safeguard a building and other structures on a property from many potential perils. Coverages similar to landlord liability insurance coverage and property coverage are found in most homeowners insurance policies.
These coverages usually aren’t included in standard homeowners insurance policies, as they help protect a landlord’s income stream rather than their building or property.
Two coverages that are found in most homeowners policies but aren’t typically in landlord policies are personal property coverage and additional living expenses coverage. It’s usually a tenant’s responsibility to insure their own belongings and make sure they can afford alternative living arrangements if their space is destroyed, and these coverages are found in many renters insurance policies. (Landlords who have appliances or furniture in units that they'd like insured can purchase landlord contents coverage, but this doesn’t normally extend protection to a tenant’s possessions).
Landlords in Vermont generally aren’t under any legal obligation to carry a landlord policy, but landlords who have a loan on their property may be required to by the terms of the loan. Many banks place such a requirement on landlords so that they know their financial interest in the property is protected.
Landlords who aren’t required to purchase landlord insurance still should have a policy in place. Without an insurance policy, a landlord is dangerously exposed to potential liability lawsuits, and they could lose their entire property in a disaster
In many cases, landlords are able to write off their landlord policy’s premiums as a business expense on their taxes. Landlords who live on their rental property may only be able to deduct a portion of their premiums. Because taxes are complicated matters and depend on the specific circumstances of a situation, landlords should contact an accountant for individualized advice before deducting their premiums.
Landlords in Vermont who want help looking for landlord insurance should contact a knowledgeable, independent insurance agent in their area. There are agents servicing Vermont, from Brattleboro, VT to Burlington, VT, who can help landlords find policies that meet their needs.