How Much Does Landlord Insurance Cost And What Factors Contribute To Its Price?

​Investing in rental property can be exciting, but not having the right insurance coverage can put your entire investment at risk. Owners of a rental property purchase landlord insurance to protect the dwelling and liability protection that homeowners insurance does not offer.

Rental properties are more likely to have more severe claims than primary residences. Due to this increased risk, landlord insurance is more expensive compared to homeowners.

What is Landlord Insurance?
Like homeowners insurance, landlord insurance covers repairing and replacing damaged materials. Landlord insurance helps property owners protect their rental assets. Compared to traditional homeowners insurance that only covers owner-occupied properties, landlord insurance helps landlords protect their buildings and lands.

Renters are not held liable for unwanted injuries, fire damages, or property theft cases, which is why landlord insurance is essential. Landlord insurance includes special coverage for risks unique to owners of rental properties that tents occupy. 

What Does Landlord Insurance Cover?
A comprehensive landlord insurance policy should have three core protections:

• Property Damage
• Liability Protection
• Lost Rental Income/Rental Default Insurance

1. Property Damage
Landlord insurance covers property damage from natural disasters, earthquakes, fires, vandalism, or even irresponsible tenants. Try to get a policy that offers replacement costs instead of cash value. 

2. Liability Protection
The liability protection covers legal or medical costs when a tenant or visitor suffers injury due to your property maintenance issue. The maintenance issues include architectural collapse, icy walkways, or out-of-control beehives. 

3. Lost Rental Income
In case your property is uninhabitable, such as mold, rats, termite infestation, or a sinkhole, landlord insurance gets you covered. Lost rental income provides temporary rental reimbursement to cover the rent money you would have received from tenants occupying the property. 

How Much Does Landlord Insurance Cost?
Due to its added protection, landlord insurance costs more than regular homeowners insurance.  Landlord insurance costs vary due to the cost of materials and labor to perform repairs fees. Here are the factors in calculating landlord insurance costs:

• Property square footage
• Property value
• Age and materials of home construction
• Crime risk
• Tenancy
• Environmental risk
• Coverage maximums
• Add-on coverage

Rental properties have a higher statistical frequency and severity of claims compared to primary residences. Therefore, landlord insurance costs more.

Get Landlord Insurance For Your Rental Property Now!
Before you rent out a property, take some time to review your homeowner's insurance policy. Landowner insurance is necessary to protect your home and rent it out. Get landlord insurance for your property before renting it out!

At Schneiderman Insurance Agency, we do our best to ensure that our clients are well-protected with affordable and comprehensive policies. We will go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (818) 322-4744 or Click Here to request a free quote. Topics and coverage discussed in this article are not guaranteed, consult with your agents to determine what your policy does and does not cover. We are more than happy to help!