Landlords need to evaluate their needs before purchasing a policy to determine the best level of coverage for their individual situation. Some policies may offer additional benefits such as loss-of-rent reimbursement if a tenant is unable to pay due to an insured peril and legal expense reimbursement if legal action needs to be taken against a tenant. It is also important to note that many policies will exclude certain types of risks such as flood damage or water damage caused by inadequate maintenance so landlords need to understand what types of coverage are included in each policy they consider.

In most cases, landlords should purchase landlord insurance before renting out any property they own to ensure they are adequately protected should any unexpected incidents occur while operating a rental business. Landlords should work closely with their insurance provider and review all details carefully before signing any contracts related to their policy to ensure all covered risks and potential exclusions are understood and agreed upon. Landlord insurance can provide peace of mind knowing that any costs associated with damages or other losses related to running a rental business are covered by an insurer rather than out-of-pocket expenses incurred by the landlord themselves.