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Sarah thought she was being smart. When she bought her first rental property in Cap Hill, she called her insurance agent and added it to her existing homeowner's policy. "Same coverage, lower cost," she figured. Six months later, a burst pipe flooded her rental during Denver's February freeze. The damage? $35,000 in repairs, plus $15,000 in lost rental income over three months. Total loss: $50,000. Her insurance company's response? "Sorry, but rental properties aren't covered under homeowner's policies."Sarah's story isn't unique. It's happening to Denver landlords every month, and it's completely preventable.
The Critical Difference: Homeowner's vs. Landlord Insurance
Here's what many Denver property owners don't realize: homeowner's insurance is designed for properties you live in, not properties you rent out. The moment you collect rent, your insurance needs change dramatically.
Homeowner's policies typically exclude:
Loss of rental income
Tenant-caused damage beyond normal wear and tear
Liability issues specific to landlord-tenant relationships
Vandalism by tenants
Business-related liability claims
Landlord policies are specifically designed to cover:
Lost rental income during repairs
Property damage from covered perils
Landlord-specific liability protection
Limited coverage for appliances you provide
Legal expenses related to tenant disputes
Red Flags That You Need Landlord Insurance
You need landlord insurance if:
You collect rent from any property
You're planning to rent out part of your home (like a basement apartment)
You've inherited a property and plan to rent it
You're house-hacking (living in one unit, renting others)
You own vacation rental properties in Colorado mountain towns
What to Look for in Denver Landlord Insurance
When shopping for landlord insurance in Colorado, ensure your policy includes:
Loss of Rental Income: Should cover 12+ months of rental income
Dwelling Protection: Adequate coverage for Denver's rising property values
Personal Property: For appliances, lawn equipment, and tools you provide
Liability Coverage: Minimum $1 million recommended
Medical Payments: For tenant/guest injuries on your property
Fair Rental Value: Covers rent during uninhabitable periods
Don't Make Sarah's Mistake
The difference between homeowner's and landlord insurance isn't just about coverage—it's about protecting your investment and your financial future. In Denver's competitive rental market, you can't afford to cut corners on protection.
Take Action Today:
Review your current policy with your insurance agent
Calculate your potential losses if you couldn't collect rent for 6 months
Get quotes from insurers who specialize in rental properties
Document your property with photos and detailed inventories
Remember, the best time to fix your insurance coverage is before you need it. Don't wait for your $50,000 wake-up call.
At Walters and Company, we help Denver property owners protect their investments through expert property management. If you have questions about or need professional property management services, contact us today. If you have insurance concerns or questions, reach out to a professional insurance agent or broker for further clarity on what best fits your situation.
Call us: (720) 357-6655
Email us: rent@rentgowalters.com
Visit us: www.rentgowalters.com
