You wouldn’t get behind the wheel of a car without proper auto insurance coverage.
And yet, countless Arizona landlords are running their operations without any protection for their interests, leaving them vulnerable to costly repairs and hefty legal fees. That’s where landlord insurance comes in.
With the right set of coverages, you can create a safer space for your tenants, all while defending yourself and your property against unwanted expenses. But of course, not all insurance companies are created equal. Here’s what every Arizona property owner needs to know before choosing the right policy for their needs…
What Is Landlord Insurance Arizona?
Landlord insurance is a specialized form of insurance coverage that protects individuals who use their rental property as a form of income. In most cases, your landlord insurance will include two separate coverages: Property Insurance and Liability Insurance.
Together, these amounts of coverage combined can give you the freedom to operate your rental business without the looming fear of financial loss. So, what does landlord insurance protect you from, exactly? Here are just a few scenarios in which this type of insurance coverage can benefit your interests…
- Your property is damaged in a natural disaster, including severe storms, fires, and tornados
- Tenants have accidentally caused significant damage to your building
- Your rental property becomes the target of vandalism or burglary
- A tenant is seriously injured as the result of something on your property, leaving you with major medical bills
Is Landlord Insurance Required In Arizona?
The answer is: sometimes. While there is no umbrella insurance regulation for people who act as landlords in Arizona and beyond, there are certain insurance requirements you may need to meet depending on how you utilize your rental property. For example, you may be required to obtain landlord insurance if…
- You have tenants that have been occupying your rental for more than 30 days
- You rent your home out on platforms like Air BNB and VRBO
- Your insurance agent determines that standard homeowners insurance does not adequately cover your rental activities
How Much Does Landlord Insurance Coverage Cost?
Just like with auto insurance or renters insurance, the amount you pay for your policy is largely dependent on your property’s unique specifications. Some of the factors that could impact your policy rate are…
- The size of your property in square feet
- What you expect to earn in monthly revenue
- Any risk factors that relate to the location of your home
- How many tenants could potentially occupy the property
To get the best insurance coverage for your budget, we highly recommend working with a licensed Arizona insurance agent who understands the ins and outs of renting a property in the Grand Canyon state.
What Does Landlord Insurance Cover?
In addition to the benefits provided by Property and Liability Insurance, there are several sets of coverage that can be added to your policy to give you maximum protection for your home and wallet.
When you rely on your home for income, even minor weather-related damage can cause a serious issue for your rental property. That’s why dwelling coverage covers repairs that are caused by natural disasters, allowing you to quickly recover from unforeseen circumstances.
Even with repair costs covered, there may be a period of time when your property is unable to be rented out. With loss of income protection, you can get the support you need to stay afloat until your home is ready for new tenants again.
Of course, not all property damage can be easily repaired. If a portion of your property or any personal items you use to maintain your home has to be replaced, this type of coverage can help you cover the costs of any necessary replacements without breaking the bank.
Arguably the broadest form of insurance coverage, open peril coverage is a form of homeowners insurance that can cover you against any losses that haven’t been specifically excluded by insurance companies. This can include fires, theft, vandalism, and medical payments stemming from an accident.