Small Asset Landlord Insurance

Guaranteed Replacement - obtain a property insurance policy that has “guaranteed replacement,” to ensure that you can rebuild your house if anything happens.  Some insurance companies do not offer this but might offer something similar like “Cost +20% increase” which would cover a 20% increase in building materials and labor.

Landlord Policy - verify that the insurance company knows it is a rental property, and that you are a landlord.  They may have special clauses that must be included to make sure you get the best possible coverage.

Liability Coverage - verify that you have liability insurance in case your tenants slip and break a bone or more.  They might sue you for medical bills, lost income, or “mental stress”.

Flood Rider - have a Flood Policy Rider if the property is in a flood zone. 

Personal Umbrella Policy - consider obtaining a separate policy called an “Umbrella Policy”, which covers YOU and all your assets.  It is a separate policy that goes above and beyond all your other policies.  If you have multiple properties, get an Umbrella Policy for 1-5 million dollars (depending on your assets).  A policy like this might only cost you around $200-$500 year.  If any of your other policies do not cover any or all your damages, the Umbrella Policy picks up the slack.  It is a sure-fire way to make sure you tenants do not cause you to go bankrupt or lose your personal home.