Renting out property is a great way to earn some extra income. However, sometimes landlords have the strangest stories to tell about their tenants. At times, people do not realize the value of others' property and may handle it without any regard for the owner. In addition to this, sometimes the tenants are negligent and may cause fire or other structural damage to your property. There are also cases where you may want to keep a few items on your rented-out property, but the tenant may not be responsible enough to ensure their safety. This is where landlord insurance comes in.

What is Landlord Insurance?

In case any of the scenarios mentioned above occur, landlord insurance will provide you with cover and financial stability. Even if you have homeowners insurance, it may not provide you with enough cover to get protection against risks that come with renting out your property. 

Of course, landlord insurance isn’t for everyone. For instance, Colorado has many festivals during the season, and people tend to rent their property for a short period every year (less than 4 weeks). In such cases, you do not need to get landlord insurance in Colorado. 

However, it is best to get landlord insurance if you are renting out your property for a longer period. You must also run a background check on your potential tenant to ensure they have a good tenant history.

What Does Colorado Landlord Insurance Cover?

Essentials, every landlord insurance in Colorado will include:

Property Insurance

Of course, the first thing you would need protection for is your property. The insurance company is liable to provide coverage in case your rented property gets damaged due to a fire, storm, theft, tenant damage, or vandalism. The loss in question may be partial or total, but you will get compensation as required. 

Liability Insurance

Sometimes accidents occur in your rental homes. If these accidents are caused by the structure of the building or negligence of upkeep regarding the property, the tenants can sue you for personal injury. In fact, if any person (tenant, guest, passerby, or trespasser) gets injured on your property, they can legally sue you for damages.

In such cases, a Colorado landlord insurance policy can protect you and provide compensation for the legal fees, settlement costs, medical fees, etc. Even something as small as a leaking pipe can cause a massive legal battle. Hence, asking for advice and getting the right information regarding landlord insurance is always good. 

Loss of Income

At times damage to the property due to fire or weather conditions is so severe that the property becomes inhabitable for residents until the repair and restoration process completes. 

Of course, then the landlord will have to suffer loss. And in such conditions, you get coverage from landlord insurance as compensation for the income you lose because of the damage. However, the cause of the damage must be mentioned and covered in the policy. You can get help from insurance advisors to develop a comprehensive insurance policy here to cover such damages. 

Additional or Optional Coverage



Many landlords provide furnished rental homes in Colorado. You may want to include your content on the property in coverage to ensure you are protected in case of damage to your personal belongings. 

Furthermore, you may also want to add natural disaster insurance or employee liability insurance to extend your coverage. Of course, it may raise your cost of insurance, but if you think it will provide you value, then it is always sensible to get extra coverage. 

In fact, some insurance companies in Colorado give you the freedom to create a custom landlord insurance policy that suits your needs. 

Is it Mandatory to Get Landlord Insurance in Colorado?

According to Colorado Landlord-Tenant Law, neither the landlord nor the tenant is required to buy insurance. However, landlords can make renters insurance a requirement for their tenants. Additionally, landlord insurance in Colorado may not be required by law, but it is a wise move to manage risk and protect your investment by getting landlord insurance. 

What is the Cost of Landlord Insurance in Colorado?

Like other insurance policies, the cost of landlord insurance in Colorado is also based on the following varying factors:

• Location 
• Size of the structure
• Rental units based on the structure
• Condition of the building and how long ago was I built
• Level of code compliance for fire alarms, electrical, HVAC and sprinklers, etc. 
• Coverage you are buying
• The security level of the property

On average, the cost of Colorado landlord insurance is $1590. It is usually between 10% to 20% more expensive when compared to a standard homeowners policy, but it does provide extended coverage specific to a rented property. 

Of course, you should not focus too much on this figure. As mentioned, the cost of landlord insurance in Colorado is dependent on many factors. Hence, it is important to get your property analyzed before adding an average amount to your budget. 

What is the Cost of Landlord Insurance in Colorado?

Insurance advisors always recommend making renters insurance a requirement for your tenants. A landlord has complete legal rights to do so. It may only provide coverage to the tenant but is beneficial for the landlord as well. 

You can maintain the property regularly to ensure that the tenant does not sue you for negligence or personal injury lawsuits. It is also good to drop in and ask to check the property to ensure everything is in order. It will give you a chance to inspect the property and evaluate damages if any. Furthermore, regular checks on the property will show your dedication toward the maintenance of the property, giving them fewer chances to file a lawsuit against you. 

You can also get landlord insurance to seal the deal. If you are interested in learning about this type of insurance and how much it costs, we recommend consulting insurance advisors who can get you the best prices and coverage. Badger Insurance Advisors can help you in this regard. Our team is not inclined toward a particular insurance company. We analyze your needs and make a strategic decision that best fits your insurance needs. 

Contact Badger Insurance Advisors today to get a detailed comparison of insurance policies from different companies.