Rental Property Insurance: Average Landlord Insurance Cost in Sacramento California

What Does a Rental Property Insurance Policy Cover?

As a landlord you know the challenges you run into from purchasing a property to maintaining it. There is a whole lot of time, money and effort that comes with renting out your property. Which makes it just that much more important to have a good landlord insurance policy. In this article we’ll go over what basics rental property insurance will cover you for and a general cost average for landlord insurance.

Landlord Insurance Basics

Rental property insurance has two standard types of protection. One part will cover the actual structure of the property. Your landlord insurance will cover any damages that need to be repaired. The next part will protect you for liability claims incase someone is hurt or injured on the property. Most rental property insurance policies will cover:

Dwelling:

The physical rental property is covered under the dwelling coverage in your landlord insurance policy. It can help to cover the cost to replace or repair the structure of the home. A DP-3 is the top form of dwelling coverage, DP-1 being the most basic form of coverage. The cost for each policy will go DP-1 most affordable to DP-3 being the most expensive. The DP-3 policy will cover most of the risks you will run into which makes it the most comprehensive landlord insurance policy. Most claims will be settled at replacement cost. 

Other structures:

This portion of your rental property insurance coverage will protect the detached structures on the property. Items such as gazebos, fences, garages and sheds are covered under other structures. 

Personal property:

Your landlord insurance policy will cover you for personal property that may be used for the upkeep of the property such as dish washers, stoves, ovens and more. 

Loss of use:

This portion of your landlord insurance policy will help to supplement any lost rental income if your tenant is unable to use the home which results in them not paying you rent. 

Medical payments:

If someone is hurt or injured on the property this portion of your coverage can help to pay for their medical bills you may be responsible for. 

Liability coverage:

If someone is hurt or injured on your property and files a lawsuit against you, this part of your rental property insurance will help to cover legal fees.

The average cost of landlord insurance

The average cost of landlord insurance will depend on many factors. If we look at national averages for rental property insurance in 2019 it ran around $1,080 per year for a standard landlord insurance policy. The premiums averaged from $600 to $2000 and are dependent on the zip code you’re located in. A rental property insurance policy is typically more expensive than a homeowners insurance policy. Mostly because it will cover you for more risks and liability. A reasonable number to estimate is roughly 20% more than a standard homeowners insurance policy.

Cost will vary by a fairly large margin when you shop for rental property insurance. There are a ton of factors that may move the rate one way or another. The amount you pay will vary based on state, county, city, the rental property is located in. The cost you end up paying will also be effected by the type of rental property you have, which can include:

• A Condo
• Single Family Home
• Two Family Home
• Multi-Family Three to Four Unit House
• Apartment Building- Five plus Rentals
• Retail
• Office
• Industrial

In addition to the list of property types, you will also have to consider if it’s a short term rental, seasonal, or full time. It’s very difficult to come up with an average cost of landlord insurance due to all the variables that may effect the rate. Our best advice is to seek out a local independent insurance agency such as Eugene C Yates insurance Agency. Our agents will help you find the best coverage for your needs and the best price available.

Landlord insurance quote

If you would like a free landlord insurance quote or if you have additional questions regarding rental property insurance, please contact us today at 916 313 6100