Colorado Landlord Liability Insurance

Landlord liability coverage is offered in most landlord insurance policies, providing protection for landlords if there is an accident or injury that occurs on the property that they own and rent out to tenants. It covers a wide range of potential losses, such as legal fees and court costs associated with defending a claim, reparations owed to the tenant if they are injured, and even property damage resulting from theft or incidences of negligence. The premium for landlord liability insurance depends on a number of factors such as:

• Location: costs can vary according to natural perils common to the region, the cost of living in the area, crime rates, and other factors
• Property value
• Type of property, e.g. apartment complex, single-family home
• The desired scope and structure of the policy

Given the unique set of risks accompanying renting out a property, landlord insurance rates are typically higher than standard homeowners policies; however, the coverage is more specialized and can help landlords protect themselves, their assets, and their operations.

Landlord liability insurance is not legally required in the state of Colorado. If there is still a mortgage on the home being rented out, landlords may be required by the lender to purchase landlord insurance. Because standard homeowners insurance policies likely do not cover a property that is being rented out, all landlords should consider the benefits of purchasing landlord liability insurance. The coverage can help them reduce their exposure to financial risk due to potential lawsuits when unforeseen events occur on the property.

Policies can be tailored to the needs of landlords based upon the property and the type of coverage desired, while offering landlords protection and peace of mind.