Insurance for Property Owners

Different Types of Property Owners Insurance

Homeowner's Insurance

Homeowners’ insurance covers damages to an individual’s residence and contents that it may contain, including furniture, furnishings, and other valuable items. It is a rather comprehensive insurance policy that also provides liability coverage.

However, keep in mind that every homeowner’s insurance policy comes with a liability limit that determines the maximum amount that will be covered by the policy in case of any unfortunate incident. While policy details may vary, depending on the policy you choose and the service provider, this kind of insurance usually covers four kinds of incidents on the insured property:

• Exterior damage to the property
• Interior damage to the property 
• Loss of or damage to personal property or assets
• Injuries on the property 

When a homeowner makes a claim on any of these incidents, they will be required to pay a deductible. Furthermore, keep in mind that “acts of war” and “acts of God” are typically NOT included in the Homeowners’ insurance.

Therefore, if you live in an area that may be prone to hurricanes, floods, or earthquakes, it is advisable to consider special coverage to protect your property.

Flood Damage Insurance

Flood insurance is essential only if you reside in a flood zone. Furthermore, if you frequently experience floods and hurricanes in your area, regular hazard insurance or a homeowner’s insurance policy is unlikely to cover any losses or damages. Unfortunately, many property investors and homeowners learn this the hard way.

Only after a natural force, such as a hurricane, causes flooding inside the house do they realize that flooding caused by external water (i.e., water that does not result from a leak or burst pipe inside the home) is not covered by their policy. You can avoid making the same mistake by investing in specific flood insurance.

Earthquake Damage Insurance

Your property might be at risk from earthquakes. As the damage caused due to natural forces is typically not included in general insurance, it is best to consider earthquake insurance separately. It is important insurance for property owners considering the magnitude of damage caused by earthquakes.

 We are talking about damage to the foundation of the house and collapsed walls and ceiling. With the right insurance plan, repairing or rebuilding your property after an earthquake can take a serious hit on your wallet.     

Loss of Income Insurance

If you are a landlord who routinely rents out their property to tenants, it might be a good idea for you to invest in the loss of income insurance. It entails attaining coverage for events that might require you to provide tenants with alternate accommodation. It also offers coverage if the property is rendered uninhabitable and you wish to recover loss of earnings during that period. 

However, here it is important to emphasize that the loss of income insurance plans vary. In most cases, it can be added to your hazard or fire insurance policy. Therefore, it is advisable for landlords to discuss the loss of income insurance with the insurance provider in detail to avoid any surprises down the road. 

Workers Comp. Insurance

Not all property owners require worker’s compensation insurance. However, it is an excellent option for property investors who purchase vacant or mostly vacant property with the intention of renovating (or selling) and have employees working on the property. Employees may include anyone, including maintenance workers, superintendents, contractors, receptionists, etc.



This kind of insurance is geared towards protecting any employees working on your property. It offers coverage for your employees and provides medical care, disability, rehabilitation, and other benefits for employees who get injured during the job. The coverage is generally based on the types of duties that employees are expected to perform and the employer’s payroll.