Michigan Landlord Insurance For Rental Properties


Michigan Landlord Insurance

Rental properties have become incredibly popular in Northern Michigan and here in Traverse City, there are hundreds of units being built each year for both long and short term rental income opportunities.

It’s important to know that insurance to protect a rental property is not the same as homeowners insurance. In fact, homeowners insurance will not cover any rental property for liability or physical damage to the structure unless that policy is endorsed properly. Neither short term nor long term rentals can be insured on a standard home insurance policy. Homeowners policies were written and designed for ‘owner-occupied’ properties. Landlords need specific insurance to protect their rental property from damage and themselves from liability of a tenant or visitor. 

Landlord insurance typically includes coverage for the building, contents, loss of income, and liability.

1) Building Coverage – Protects the physical structure of your rental property from fire, storms, vandalism, and other covered perils.

2) Contents Coverage – This protects your personal belongings in the rental property from fire, theft, and water damage.

3) Loss of Income Coverage – This protects you from loss of rental income if your property becomes uninhabitable due to a covered event.

4) Liability – Liability protects you when someone is claiming injury while on your property. Whether you are liable or not is for the courts, judge etc to decide, but the insurance also pays for your defense while determining fault.

The most important thing to know regarding protecting rental properties is that you need to have a discussion with your insurance agent to make sure you have the proper coverage.