An insurance policy designed for rental property owners that covers the building structure, liability, and lost rental income if the property becomes uninhabitable due to a covered loss. It does not cover tenants' personal belongings — tenants need renters insurance for that.
Related Terms
Additional Living Expenses
Homeowners insurance coverage that reimburses you for extra costs incurred when you cannot live in your home due to a covered loss. Also known as ALE or loss of use, it covers hotel bills, restaurant meals, and other temporary living costs above your normal expenses.
Homeowners Insurance
A policy that bundles coverage for your home's structure, personal belongings, liability protection, and additional living expenses into one package. The most common form is the HO-3 policy, which covers the dwelling on an open-peril basis and personal property on a named-peril basis.
Renters Insurance
A policy for tenants that covers personal belongings, liability, and additional living expenses. It does not cover the building structure itself, which is the landlord's responsibility. Renters insurance is affordable — typically $15 to $30 per month — and is increasingly required by landlords.