Landlord Insurance and What it Covers

Landlord insurance is a policy for landlords who rent out their homes. Furthermore, this insurance type usually covers two different types of coverage. They include property and liability protection. So, the purpose of these coverages is to protect the policyholder against financial losses. However, renters do not benefit from landlord insurance. Besides, the policy will protect the property from damage.

Landlord Insurance and What it Covers

Therefore, if you are a renter and you need coverage for your personal property and damage, you can get and purchase renters insurance. This means that only the landlord of a home or property will benefit from landlord insurance. Nonetheless, property owners or homeowners enjoy nice coverage options when they get this insurance.

What Does Landlord Insurance Cover?

As mentioned earlier, landlord insurance does not cover the properties of renters but only the dwelling and other structures, liability, and personal property. For more understanding, here are the coverage options:

  • Personal property.
  • Dwelling coverage.
  • Loss of rental income.
  • Structure coverage.

Additional coverage you can consider includes:

  • Vandalism.
  • Fire department service charge.
  • Collapse of property.
  • Floods.
  • Building codes.
  • Burglary.
  • Trees, shrubs, and plants.
  • Debris removal.

So, you can choose to add this coverage to your policy when you are purchasing one to get a perfect quote.

What Does It Not Cover?

Landlord insurance has a lot of nice coverage, and you can customize your policy to your preferences. However, there are certain events and coverages that landlord insurance will not cover. They include:

  • Mudslides
  • Earthquakes.
  • Maintenance and equipment breakdowns.
  • Asbestos removal.
  • Volcanic activity.
  • Shared property.
  • War.
  • Tenant property.
  • Water damages.
  • Neglect.
  • Erosion.

So, if you are looking to get this insurance, keep in mind that no policy will cover any of the following: But it all depends on the insurance company you are using.

How Much Does It Cost?

The average cost of landlord insurance is about $2,100 per year. But it can also cost 25% more than normal homeowner insurance. With this in mind, some factors also affect the price of purchasing this insurance. Some of them include:

  • Deductible.
  • Insurance company.
  • Discounts.
  • Natural disaster risk.
  • Location.
  • Home features.
  • How old your home is?
  • Several rental properties.
  • Crime rate.
  • Rent price.

Level of coverage as well as other unlisted important factors. If you need help, speak to a landlord insurance expert.

Why Do You Need One?

The most essential importance of this insurance is protection. Besides, your tenants’ insurance will not cover your property. In other words, homeowner’s insurance does not offer coverage for the dwelling of the owner. So, as a landlord, you can purchase this insurance, which will help cover damages to properties and offer liability protection.

In addition, this insurance can help you cover unexpected expenses related to your property as well. What’s more, if something happens, you do not have to touch your savings when you have landlord insurance. Following this, you can access legal representation if you ever get sued.

How To Apply For Landlord Insurance

Applying for landlord insurance is the final decision to make if you decide to purchase a policy for yourself. However, there are certain things that you need to consider before you purchase a policy. If you would like to apply for this insurance type, here is what you need to do:

  • Find out your property type.
  • Think about the coverage you need.
  • Compare the coverage and cost of various landlord insurance companies.
  • Get in touch with a local landlord’s insurance agent.
  • Or you can go online and check the official website of the insurance company.
  • Apply for a quote online.
  • Provide all the necessary information and documents for your application.

Submit your application and wait for feedback after reviewing it. Moreover, you can check the reviews of users or clients of these companies to find out if they are capable of giving you the coverage you need and seek.

Best Landlord Insurance Companies

A lot of insurance companies offer landlord insurance as part of a policy you can purchase or get. What’s more, some of these companies require you to apply physically, or you can conveniently do it online. Nevertheless, here are some of the best companies that I recommend you consider:

  • State Farm.
  • Farmers.
  • Liberty Mutual.
  • Obie.
  • Travelers.
  • Geico.
  • Hiscox.
  • Allstate.
  • Foremost.
  • American Family.
  • USAA.
  • Steadily.
  • The Hartford.
  • Nationwide.

Here is a tip: if you want to choose the best landlord policy you need to look out for the cost, coverage options, ratings, and customization. So, be sure to compare these factors when shopping for a quote.