One insurance policy will not cover everything. Some homeowner's insurance policies exclude floods, earthquakes, and hurricanes. If you live along the coast or in a flood zone, you have to pay a higher premium to include flood and hurricane coverage, or take out another policy to get it. Although liability is included in your homeowner's or landlord protector policy — usually from $100,000 to $300,000 — if you want more coverage, you have to pay extra.

The insurance world is complex and changing all the time. It's getting more expensive to purchase insurance, and insurance agents can vary significantly in the knowledge and coverage they offer. So the burden falls upon you. Learn as much as you can about insurance companies — what's included in a policy and what's excluded. Investigate several companies and the policies they offer before you purchase anything. Compare prices and search for a qualified, knowledgeable agent who is willing to spend the time to find out what you need and the best way to get it for you. When you're a landlord, your risk for claims and liability goes up. You don't want to find out after an accident or fire that your policy isn't what you thought it was.