Landlord insurance covers damages caused to the property by break-ins, natural disasters, etc. when shopping for insurance ensure you have a Real Cash Value (RCV) policy. However, for some disaster-specific insurance, you may need to sign up for a separate policy like flood policies. Liability insurance also covers you in case of tenant lawsuits. You can also encourage your tenants to take a renters insurance policy so that they are covered in case of any incidents that damages their belongings.