What Is A Landlord Insurance Policy?
A Landlord Insurance Policy is insurance for people who rent out a home or property they own to a tenant. It's often called buy-to-let home insurance and also provides a layer of extra protection because it treats your rental properties as a business. Unlike standard homeowners insurance; rental property insurance accounts for the unique risks associated with leasing a property.
What Insurance Does A Landlord Need?
Landlords typically need a combination of the below business insurance coverages to protect their property, their tenants, and their business. Below I list some common types of insurance coverage a landlord might need. While the below list might seem extensive, don't worry; most policies come equipped with the below coverages.
Keep in mind that each landlord's situation is unique, so it's essential that you understand the specific risks associated with your rental property and choose the appropriate types of insurance. Speaking with a licensed agent who specializes in rental properties can be very helpful in determining the right coverage.
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How Much Does Landlord Insurance Cost?
About: $1,516/Year
$1,516 is the average annual cost for landlord insurance when you take into account that it's about 25% more expensive than a traditional home insurance policy. Since the average cost of home insurance is about $1,083 you can expect to pay about $450 more per year for rental property insurance. For more details you can view your specific landlord insurance rates by state.
What Are The Factors That Affect Landlord Insurance Rates?
Your Building
The age of your home affects your policy costs. How old is the plumbing? When was the roof last replaced? Is the wiring copper or aluminum?
Location
The location of your home is one of the largest factors insurance companies take into consideration when creating your policy.
Credit History
You have a completely separate credit score that was made specifically for insurance products. The better this score, the lower your rates.
Coverage Levels
Your insurance company will give you several coverage amount options. This amount varies based on your choices. Most of these options can be adjusted.
Deductibles
This is another option that you can adjust to suit your financial needs. A deductible is the amount you must pay before insurance pays out.
Use Our Calculator
We created a pretty cool landlord insurance calculator that you can use to get a more solid understanding of how much coverage you need.
How Can I Get A Landlord Insurance Cost Estimate?
How Does Landlord Insurance Work?
Your first step is to determine how much coverage you will need for the different insurance types such as dwelling, rent loss coverage and liability.
You will make monthly payments for the life of the policy. You should still keep your policy after your property is paid off.
If your personal property is damaged or you suffer any type covered loss, simply file a claim online or by phone to get things covered.
The Different Types Of Landlord Insurance
"in Plain English”
There are 3 different types of rental property insurance policies that you may come across. They are called "forms," and each of them have a different level of coverage.
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DP1 - Dwelling
A (DP1) or dwelling policy is a named peril policy. This means the policy will only cover events explicitly named in your policy. Anything that’s outside of those named perils will not be covered.
DP2 - Replace Cost
The (DP2) policy will provide more coverage than the DP-1. It does this by add more perils can be covered as well as providing you coverage on a replacement cost basis instead of an actual cash value cost basis.
DP3 - Open Peril
(DP3) policies are the most popular for landlords because they are considered an open peril policy. That designation means your policy will cover damage from anything other than items on the excluded list.
What Does Landlord Insurance Cover?
Landlord Insurance Covers
Your landlord insurance policy will cover the building and property as well as expand on liability coverage to make sure you don't have to deal with legal fees. And if your property becomes uninhabitable your income loss protection will kick in and cover the rent your tenant owed.
Property Damage:
This type of coverage is usually used to repair or rebuild your unit when damage from a covered loss happens like fire, vandalism or a natural disaster.
Rent Loss Coverage:
If your property becomes uninhabitable from things like a sink hole, mold or termites, your rent loss coverage would kick in to pay you the rent money a tenet would have been paying.
Liability Protection:
Liability protection covers the medical or legal costs that might come if a tenant or visitor suffers an injury due to a property maintenance issue.
What's The Difference Between Landlord Insurance And Homeowners Insurance?
Home Insurance Vs Landlord Insurance
While both of these products are for homes that you personally own, only homeowners insurance can be used for the home you actually reside in. Landlord insurance is used to cover properties you own but rent out to others.
LANDLORD INSURANCE WHERE YOU LIVE
Landlord insurance by state.
Protecting your new rental or investment property should be a top priority.
Click on your state to get a free landlord insurance quote and make sure that you're fully protected.
How To Buy Landlord Insurance Online
Get Some Quotes
Don't be shy, click through to get some instant quotes for home insurance without having to speak with an agent or give too much personal information.
Apply For A Policy
Once you have viewed the quotes you can apply online for coverage. The application process is fast and can usually be completed in real time and in one sitting.
You're Covered
By the end of your application you will usually have an approval, at that point all you need to do is pay for your policy and you're covered.
Approved In Minutes!
We are seeing customers get approved for their home insurance policy within 20 minutes or less.
