Learn how umbrella insurance shields rental properties from liabilities, offering landlords crucial security during financial storms.
In partnership with:
At Marble, we're committed to guiding you towards better insurance choices. While our editorial content adheres to strict standards, we do occasionally mention products from partner companies. Find out how we keep the lights on.
More info
Being a good landlord means keeping your property in good shape. You fix problems quickly and make sure the building is safe for your renters. But while you’re out there staunching leaks and keeping the gutters clean, who is looking out for you? Because just as your property can cause problems for your tenants, other external factors can cause problems for you and your property.
We know that as a good landlord, you already have insurance. But sometimes a single policy isn’t enough. Life can get messy, after all! And that’s where an umbrella policy specifically designed for a rental property can help you keep your property shipshape.
You rightly might want to know what exactly such a financial lifesaver looks like. To start, let’s consider umbrella insurance, which is a form of excess liability coverage. Think of it as the extra strong rain boots you wear during a torrential downpour. After all, sometimes a raincoat just isn’t enough!
In this case, an umbrella insurance policy supplements a pre-existing landlord or homeowners policy by providing additional coverage if you reach the limits of that underlying policy. This means that if you exceed the liability limits of your original policy, umbrella insurance will kick in and cover the difference.
These policies offer quite a versatile shield and can be adapted to various circumstances that a landlord might face. From accidents that occur on your property to alleged discrimination and the resultant legal battles, your umbrella insurance policy will protect you against a broad range of incidents that a standard policy may not touch. And given how litigious life in the US can be, it’s good to make sure you’re covered!
You might be asking yourself if all this worrying is really necessary. And we get it: It can be exhausting to always be preparing for the worst. But if the worst happens — like, say, one of your tenant’s slips on the stairs, sues you for bodily injury, and your standard landlord insurance policy doesn’t cover the entire claim — then you’ll be very glad you upped your coverage.
And while landlord insurance is generally robust, it’s not exhaustive, which could leave you vulnerable. Property damage due to natural disaster and negligence are just some of the risks you might encounter. Understanding any gaps in your coverage ensures that you’re ready no matter what comes your way.
To quote the author Leo Tolstoy: “All happy families are alike; each unhappy family is unhappy in its own way.” The same can be said of rental properties. Those that run smoothly are all much the same, whereas those that have problems, well, those problems are all unique — and extremely annoying (and often costly!).
A smart landlord like you will assess any risks well in advance of renting. To do so, take into consideration the location, type and age of your property, and the nature of your tenants. Are you renting to college students, a family of four, or a middle-aged man? Is the building rundown or chockablock with modern conveniences? What’s the neighborhood like? Have you installed security alarms and smoke alarms? Identifying risk factors can help you gauge whether your current insurance is sufficient or if you might want the extra security an umbrella policy can provide.
Once you identify your risk factors, you can compare umbrella insurance policies. You’ll want to make sure that the policy integrates with your current liability protection and fills in any gaps. Your rental is an investment, after all, and one you want to protect! Chatting with an agent or provider can help you determine what policy best fits your budget and circumstances.
You may also want to discuss potential tax implications. In some cases, the premiums for umbrella insurance, especially when linked to rental property, are tax-deductible, which is yet another benefit.
Remember, the right liability policy is not just about coverage; it's about peace of mind. And as a landlord, we bet you could use more of that! Marble can help you find quotes, compare policies, and earn rewards — all from one easy-to-use digital wallet. Join today!
