If a pipe bursts and damages the building, the landlord’s insurance pays the repair costs. If the flooding damages a tenant’s laptop, the tenant’s rental property insurance covers that. As a landlord, you may want to require that your tenants carry renters insurance to prevent any problems or misunderstandings down the line.
AAA offers special “extended replacement cost coverage,” which repairs or replaces your dwelling at today’s costs—up to 150 percent of the policy’s coverage limits. You may also purchase optional coverages for rebuilding your property according to modern building codes following a covered loss.