Most standard homeowner policies require that the named insureds(owner of the home) on the policy also reside in the home. If that is not the case and there is a loss, it could render the homeowner policy null & void and a claim could be denied. It is important that a home have the correct Landlord’s policy if the only occupants are tenants, even if those tenants are family members you rent to. These policies are very similar in coverage to Homeowner policies, they just allow for tenants to be occupying the home.

 

Lawsuits have become commonplace in today's world, and higher sums are being awarded than ever before. Home and auto policies provide you with liability coverage, but they have limits that are often exceeded in today's culture of lawsuits. An Umbrella policy provides extra coverage, starting at $1M, coming into play when either home or auto limits are maxed out from a severe or complicated incident. 

As a landlord myself, I can tell you that Liability Insurance can be your best friend. In today’s rental market, with rents sky-high, tenants have certain expectations for what they think a landlord should and shouldn’t do and are not afraid to threaten legal action if they believe they have been wronged. Your Liability Insurance can pay out for an injury a tenant suffers in your home or from non-injury claims like accusations of wrongful eviction, wrongful entry, libel, or slander.

This is exactly why a landlord should strongly consider an Umbrella Policy to back up their liability limits. If someone is claiming they tripped on the walkway, and you should have maintained it better, and now they are disabled. Not only will you have your selected liability limit to protect you, an Umbrella policy can provide $1 million or more on top of your liability limit if it’s exhausted by the claim.