3 Clauses You Need to Have in Your Landlord Insurance Policy

By Bobbye Joe McMillan

Bobbye Joe McMillan is the driving force behind Cornerstone Property Management, bringing over 30 years of expertise in real estate to help clients achieve their property goals.

Our landlord insurance promises protection—but does it actually deliver when disaster strikes? Most policies have dangerous gaps that only reveal themselves when it’s too late. Before you face a nightmare scenario (and a shocking bill), let’s expose the three critical clauses that make or break your coverage:

1. Loss of rent coverage. If your tenant is forced to move out due to a covered event, such as a fire or flood, you stop receiving rental income. This clause reimburses you for the lost rent. Without it, you’ll be left covering your mortgage out of pocket while the property sits vacant.

2. Liability protection. This clause protects you if someone is injured on your property and decides to take legal action. That could include a tenant’s guest slipping on icy steps or getting hurt due to faulty railings. Without this protection, you could be responsible for legal fees and medical expenses.

3. Malicious damage by tenants. Standard policies often cover only accidental damage. If a tenant intentionally damages your property—for example, by punching holes in walls or vandalizing the unit—this clause ensures you’re covered for repair costs.

Landlord insurance should do more than check a box. It should protect you when things go wrong. If you’re unsure whether your policy includes these critical clauses, let’s review it together. Book a quick consultation, and I’ll walk you through what to look for. Call or email me to schedule a consultation, and don’t wait for a disaster to find out you’re not covered.