From Anchorage to Juneau, Alaska is teeming with rental properties. Whether you are renting out your rural Alaska single family home to supplement your income stream, or you own several urban apartment complexes, the value of obtaining a comprehensive landlord insurance policy cannot be overstated.
Before you search for landlord insurance quotes, however, there are several factors to consider.
According to market analysis:
Landlord insurance operates much like any homeowners or property insurance in that you pay a monthly premium. Should you need to file a claim for a covered event such as a fire, break-in or tenant damage, your insurance company can help pay for repairs or replacement of your property.
Landlord insurance is different from a traditional homeowners insurance policy because renters tend to cause more damage to a property than owners. Landlords also face a different set of risks than owners and they need an insurance policy that mitigates those risks.
Although not required by Alaska state law, landlord insurance is strongly recommended for any investment property owner who plans on leasing their home, condo or apartment. That's because the vast majority of traditional property insurance policies will not cover any damage caused by tenants if the home or unit is being rented out.
If you rely on the revenues your rental property contributes to your budget, finding a landlord insurance policy to cover your potential losses is a must.
Most insurance companies will offer you a variety of coverage options from which to choose as you build your landlord insurance policy, including:
Your landlord insurance policy extends only to that which you own. Therefore, unless you are found liable for any damages to your tenants' property, your insurance policy will not cover the items your renters keep in the home or unit.
Many landlords choose to require their tenants to purchase renters insurance policies as part of their lease agreement. You may choose to include such a policy in your own documentation. This not only ensures your renters are covered in the case of fire or theft, but it can help prevent renters from trying to sue you for damages if they have the protection of their own insurance policy.
Because landlords vary from the single family dwelling owner to the real estate mogul who owns several high-rise apartment complexes, it is difficult to estimate the average cost of landlord insurance. Most insurance companies take several factors into consideration when they calculate your landlord insurance quote, including:
It is fairly typical for a landlord insurance policy on a single family home to be quoted at about 25 percent higher than a homeowners insurance policy for the same property. That's because of the additional risks landlords and rental properties face. Keep in mind, however, that most landlords set their rental rates with the additional expense of landlord insurance factored into the price.
If you are like most Alaska landlords, you have come to rely on the income your rental property provides. You want to protect that revenue and your investment property with an insurance policy made just for you.
Knowledgeable, independent insurance agents on the Trusted Choice® network are always available to answer your questions, suggest coverage options best suited for your property, and even assist you in filing a claim. These agents have years of experience working with Alaska insurance companies, enabling them to find a number of quotes with the best coverage options at the most affordable rates. Contact a Trusted Choice member agent near you to find out how you can obtain a landlord insurance policy that meets your needs and budget.