Insurance Quote Landlord

Insurance Quote Landlord: Best Rental Property Insurance

When renting out your home or investment property, it’s essential to obtain a specialized type of homeowners insurance policy tailored for landlords. Commonly known as rental property insurance (RPI) or landlord insurance, this policy provides coverage for your rental property or apartment dwelling, as well as liability protection in case of incidents on the premises and other necessary coverage. Continue reading to understand the distinctions between rental property insurance and homeowners insurance, and discover the top five insurers recommended by our Guides Home Team for covering you and your rental property.

What Does Landlord Insurance Cover?

A landlord policy covers three main categories of risk.

Property Damage:

Covers damages to the property’s structure caused by natural disasters, vandalism, or intentional damage caused by a tenant due to negligence or during an eviction.

General Liability:

Claims a landlord may face injuries to a tenant, a tenant’s guest, or a neighbour. As a rule of thumb, covered costs can include medical expenses, legal fees, costs to settle a lawsuit, and funeral costs.

Loss of Income:

One of the main reasons investors purchase rental property is for the recurring income stream. But sometimes, things like natural disasters can leave the property uninhabitable. Landlord insurance may reimburse a landlord for lost income when the property is being repaired, and a new tenant is located.

Additionally, you could add extra coverage or riders to your policy to cover claims arising from flooding, water backup, natural disasters, personal items used in a rental property – such as furniture and appliances owned by the landlord – and more.

How Much Does Landlord Insurance Cost? Best Rental Property Insurance

As a rule of thumb, landlord insurance typically runs higher than a standard homeowners insurance policy. However, insurance for rental property can vary quite a bit (from $800 to $3,000 per year for a 3 bed/2 bath single-family rental, depending on the state), simply because every home is unique and every landlord has different coverage needs. An excellent way to get a free instant quote online for landlord insurance is with Obie. Obie offers instant insurance specifically built for landlords and real estate investors. Landlord insurance through Obie is available in all 50 states, and investors have insured more than $4 billion in property to date. When shopping around for a landlord insurance quote, there are several factors insurers consider when calculating a premium, including:

Type of rental property, such as a single-family rental, small multifamily property, larger apartment building, condominium unit, or short-term rental

Neighborhood of the area where the rental property is located, taking into consideration important criteria such as median home values, income levels, employment rates, and school district quality.
Physical characteristics of the rental property including square footage and lot size, number of bedrooms and bathrooms, elevation and number of floors, outbuildings such as a freestanding garage or guest house, and renovated basement or attic
Type of construction materials used in the home, original build date, and recent updates done such as a new roof, energy-friendly features such as double-paned windows, or a newer heating and cooling system
Location of a home within the neighbourhood and proximity to a hydrant or fire station, and the estimated amount of time it would take to extinguish a fire in the unfortunate event that one occurred
Area of the county the rental property is located in, and whether the region is typically subject to natural disasters such as coastal flooding, hurricanes or tornadoes, or snow and ice storms

Best Rental Property Insurance Companies

After in-depth research, we found the following providers to be the best home insurance companies for rental properties.

Liberty Mutual: Our pick for discounts
Farmers: Our pick for customizable coverage
Allstate: Our pick for extended coverage
Travelers: Our pick for deductible savings
USAA: Our pick for members of the military community

Landlord Insurance vs. Homeowners Insurance

Although similar in many ways, rental property insurance and home insurance are different insurance products. If you own an investment property and plan to have tenants living in it long term, you’ll purchase a landlord insurance policy, rather than a homeowners insurance policy. Then, your tenants will purchase their own renters insurance policy to complement your policy, covering their personal belongings and liability.

Here are more details about the primary coverages found in landlord insurance policies:

Dwelling coverage:

This covers damage to the dwelling and structure of the building after an unexpected event, such as a storm or fire. It pays up to a certain limit that you agree to when signing up for the policy. This limit is usually equal to the estimated value of the home since it pays for its replacement after it’s damaged or destroyed.

Other structures coverage:

This coverage is usually equal to around 10% of your dwelling coverage limit, and it pays for repairs or replacements to buildings or structures that aren’t considered part of the main dwelling, such as a fence, detached garage, in-ground swimming pool, storage shed or gazebo.

Liability coverage:

If someone visiting your tenant gets injured by something on the property that you’re responsible for, you could be liable for legal fees and medical costs if they sue you. This coverage helps protect you from those unexpected costs.

Landlord’s property coverage:

Although your rental property insurance policy doesn’t cover your tenant’s personal belongings, it will cover your belongings that may be on the property and receive damage due to a covered peril. For example, if you include furniture in your rental, that’s considered your property and would therefore be covered if it is damaged by the tenant or a covered peril such as a severe weather event or structure fire.

Loss of rent coverage:

Similar to a homeowners insurance policy’s loss of use coverage, this covers months of rent that you may lose if the property is deemed uninhabitable after a covered peril.

While some of these types of coverage can often be found in homeowners insurance policies, such as dwelling and liability coverage, the amounts and terms of the coverage in the policy can be different.

Maximizing Savings:

There are several strategies landlords can employ to maximize savings on landlord insurance, including:

Bundling Policies:

Many insurance companies offer discounts for bundling multiple insurance policies, such as landlord insurance and homeowner’s insurance or auto insurance.

Risk Mitigation:

Implementing risk mitigation measures, such as installing security systems, smoke detectors, and fire extinguishers, can help reduce insurance premiums by minimizing the likelihood of claims.

Reviewing Coverage Regularly:

Periodically review your landlord insurance coverage to ensure that it remains adequate for your needs. As your rental property portfolio evolves, adjust your coverage accordingly to mitigate risks effectively.

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Getting landlord insurance quotes is a vital first step in safeguarding your investment in rental real estate. Landlords can obtain comprehensive insurance coverage at competitive rates by being aware of their options for coverage, getting accurate quotes, comparing quotes from several providers, and maximising savings through calculated actions. Get quotes for landlord insurance now to protect your investment and don’t let your rental property go uninsured.

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