Landlord insurance is great for adding additional protect in the event disaster strikes. Please make sure you are fully covered with a good rental property insurance policy to protect your valuable investment.
The national average for landlord insurance is around $1,300 annually.
Homeowners insurance will help to cover costs if a storm hits and the structure of the home is damaged or your personal property is destroyed. A good renters insurance policy will cover tenants personal property if a covered peril was to take place. Landlords on the other hand face a different challenge. The landlords buildings are structures that can be damaged by the same events as any other structures, but when they are damaged, property owner stands to lose income while potentially expensive repairs are done.
Landlord will have other things to worry about such as traveling costs for repairs and loss of income if a tenant can not stay in the home. As a landlord you will encounter multiple different risks. And a homeowners insurance policy can only cover so much and it is designed to cover owner occupied homes so there’s always a chance you won’t be covered if the damage is tenant related.
Although, homeowners insurance and landlord insurance are very similar and cover a lot of the same risks. So is landlord insurance most expensive than homeowners insurance? In short, yes. Landlord insurance will cover you for bigger risks and claims.
What Is Landlord Insurance? What Does Rental Property Insurance Cover?
Rental property insurance is designed much like a homeowners insurance policy. Should an event covered by the policy occur, home insurance should cover the cost of repair & replacement of materials damaged in the event after the deductible has been paid.
Landlord insurance typically covers Moree risks than homeowners insurance. Natural disasters (excluding floods and earthquakes), fires, electrical and gas malfunctions, vandalism, & tenants who choose to damage the property are all events that fall under the protection of the policy. Also covered is the structure of the building and some personal items used to maintain the property such as lawnmowers, snowblowers, washers and dryers and more.
Others things covered are security cameras, items used to protect the property, and furniture for furnished units. Rental property insurance has liability coverage as well, so if someone falls and hurts themselves on the property landlord insurance can cover the medical fees and legal fees if you get sued.
Rental property insurance can also help to cover lost rental income if a covered peril happens and your tenant is unable to pay you rent. Landlord insurance may reimburse you for any lost rent while repairs are being made.
Please keep in mind rental property insurance will not cover flood or earthquake damage. If these are risks you believe you may run into you may want to look into flood insurance or earthquake insurance.
Calculating Rental Property Insurance Cost
One of the first things you will want to consider is the number of units you own. Do you need rental house insurance, insurance for an apartment building, coverage for a condo, or are you renting a room? The cost of landlord insurance will largely depend on the amount of rental units you have. The payout type you choose will also play a role in determining your rate. Are you getting an actual cash value policy or replacement cost? There are many factors that will be used to calculate your landlord insurance rate.
The cost of rental property insurance will vary from state to state and city to city. Some zip codes have a higher claims history than others. Things like this can create adjustments in your rental property insurance premium. You may have your home in an area prone to natural disasters such as wildfires, earthquakes or landslides. If the area your home is located in is more of a target for disaster, more than likely you will notice higher rates on your landlord insurance. Below are some of the more common items used to calculate your rate:
- Square footage of the home
- Value of the home
- Age and materials of home construction
- Tenancy
- Crime risk
- Environmental risk
- Coverage maximums
- Add-on coverage
Landlord insurance quote
If you would like a free landlord insurance quote or have additional questions regarding rental property insurance please reach out to us at 916 313 6100