Landlord Insurance: 5 Must Have Rental Property Policies

A solid landlord insurance policy generally covers liability claims, property damage, and loss of rental income if a unit becomes unlivable. For property owners in Elgin, Huntley, and across Kane and McHenry counties, knowing the core coverages helps you build a policy that actually protects your investment. Here are the five must have rental property policies.

1. Property Protection (Dwelling Coverage)

Also called dwelling coverage, this protects the physical structure against weather related events and disasters like ice, hail, wind, lightning, and fire. Note that most landlord policies exclude flood and earthquake damage, which require separate coverage. Learn more about coverage you need as a landlord and the habitational insurance page.

2. Personal Property Protection

This covers personal items you keep on the premises for tenants or maintenance staff, such as lawnmowers and appliances like refrigerators and dishwashers. Tenant belongings are not covered here and require renters insurance. See tenant property damage and landlord vs renters insurance.

3. Rent Loss Protection

If a covered loss makes your rental unlivable, rent loss protection replaces the income you would have collected, so you can keep making mortgage payments while repairs happen. Read does landlord insurance cover loss of rent and how it covers lost income.

4. Replacement Cost vs. Actual Cash Value

An actual cash value policy pays the depreciated value of damaged property, while a replacement cost policy pays to replace items new without deducting for age. Replacement cost costs more but pays out more when you file a claim. Compare options in factors that influence landlord insurance cost and what policy a landlord needs.

5. Acts of Nature Protection

Standard landlord policies do not cover disasters like hurricanes and earthquakes. If your property sits in a higher risk area, you may be able to add this coverage as an endorsement. See things you might not know about landlord insurance and what is required in Illinois.

How Do You Build the Right Landlord Policy?

Match these coverages to your property type, location, and risk tolerance, and review limits as rents and rebuild costs rise. An independent agent can bundle these into one policy and compare carriers. See questions to ask your provider and is landlord insurance worth having.

Work With Pro Insurance Group

Pro Insurance Group is an independent insurance broker based in Elgin, IL, serving clients across Illinois and 40+ states. Because we shop 20+ A-rated carriers, we put the whole market to work on your rate, and we re-shop every renewal so your premium never quietly creeps up. No agency fees, ever.

Get My Free Landlord Quote

Prefer to talk it through? Call 833-776-4671 or text "quoteme" to 312-878-9416.

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