Owning rental properties in Salt Lake City can be a rewarding venture, but it also comes with its fair share of risks. As a landlord, understanding the various types of insurance available is crucial for protecting your investment and maintaining peace of mind.
Nearly 89% of landlords report paying for property repairs out of pocket, underscoring the prevalence of unexpected damage. The right insurance coverage can shield you from these costly surprises. Here are the essential types of insurance that every landlord should consider.
Landlord Insurance (Dwelling Policy)
This is the primary property insurance coverage policy every rental property owner should carry. Landlord insurance is designed specifically for properties that are rented out and typically covers the structure of the building, detached structures like sheds or garages, and loss of rental income due to a covered event such as fire, storm damage, or vandalism.
It also usually includes liability protection, but coverage can vary between providers, so it's important to review the policy carefully and choose one that matches your property's specific risks.
Landlord Insurance Essentials: Liability Insurance
Liability coverage protects you if a tenant or visitor is injured on your property and you are found responsible. It can help pay for medical bills, legal defense fees, and court-ordered damages. Even one accident, like a slip on icy steps or a fall due to uneven flooring, could lead to a costly lawsuit.
This type of insurance is essential for any landlord looking to avoid major out-of-pocket expenses from legal claims.
Loss of Rent Coverage
If your rental becomes uninhabitable due to a covered issue, like fire, storm damage, or serious water damage, loss of rent coverage can reimburse you for the rental income you would otherwise lose. This allows you to keep up with mortgage payments, utility bills, or other financial obligations while repairs are being made. It helps keep your finances stable during unexpected downtime between tenants.
Umbrella Insurance
Umbrella insurance provides extra liability protection beyond the limits of your standard landlord or liability policies. If you own several rental properties, have multiple tenants, or hold high-value assets, this coverage offers an added layer of security in the event of a major claim or lawsuit. It can be especially helpful if you face legal action that exceeds your basic coverage limits.
Flood and Earthquake Insurance
Most standard landlord insurance policies exclude damage caused by natural disasters such as floods or earthquakes. In Utah, where seismic activity is possible and flash floods can occur in certain areas, landlords should consider adding these policies to their Salt Lake City rentals for full protection.
Premiums will vary depending on your property's location, flood zone, and other risk factors, but the peace of mind is often worth the added cost.
Secure Your Future as a Landlord
Protecting your investment starts with the right types of insurance and expert property management. At Utah Property Solutions, we offer full-service support to landlords across Salt Lake City and surrounding areas. As a veteran-owned company built on trust, transparency, and results, we treat every property like our own.
With flexible month-to-month agreements and a team of licensed professionals, we're here to help you succeed. Reach out to us today to safeguard your rental portfolio with confidence.