Landlord Insurance Glossary

Understanding key insurance terms helps you make better coverage decisions. Here are the most important landlord insurance terms you should know.

A – C

Actual Cash Value (ACV): The replacement cost minus depreciation. Pays out based on the current value of damaged property, not the cost to replace it.

Builder’s Risk Insurance: Coverage for a property under construction or renovation.

Coverage Limit: The maximum amount your insurance company will pay for a covered claim.

D – L

Deductible: The amount you pay out of pocket before your insurance coverage kicks in.

Dwelling Coverage: Pays to repair or rebuild the physical structure of your rental property after a covered loss.

Liability Coverage: Protects you against lawsuits for bodily injury or property damage that occurs on your rental property.

L – Z

Loss of Rent: Covers lost rental income if your property becomes uninhabitable due to a covered loss.

Replacement Cost: Pays to replace damaged property with new items of similar quality, without deducting for depreciation.

Vacancy Clause: A policy condition that limits coverage if a property is vacant for an extended period.