Landlord Insurance By The Numbers
Number of Home Burglaries 2.5 million annually
Average rental cost in the US $188,900
Average landlord insurance cost: $986 year
Popular Questions about Colorado Landlord Insurance
37% of homes in Colorado are rentals.
Landlord insurance is designed to provide coverage for residential properties that are occupied by tenants. With this insurance, landlords can get coverage for loss or damage to their rental properties caused by hazards such as fire, severe weather events, and property crimes.
With this unique and necessary coverage, landlords can also receive compensation for loss of income if one or more of their rental homes becomes uninhabitable due to circumstances beyond their control or if a tenant maliciously damages the property.
Landlord insurance is a specific type of homeowners insurance with a few unique differences.
Where does the policyholder live?
Homeowners insurance- In the insured property.
Landlord insurance- Somewhere else and leases the property to others.
What buildings does the policy cover?
Homeowners insurance- The home itself and other structures on the property.
Landlord insurance- The home itself and other structures on the property.
What personal property does the policy cover?
Homeowners insurance- Most personal property is covered, including items such as furniture, clothing, cookware and appliances.
Landlord insurance- Only covers items owned by the landlord that are used to service the rental property, such as appliances, snow blowers, and light fixtures.
What does the liability coverage do for me?
Homeowners insurance- Provides coverage for personal liability lawsuits regarding incidents that occurred in or away from the home.
Landlord insurance- Provides coverage for personal liability lawsuits regarding incidents that occurred only on the rented premises.
Coverage for occupant’s personal property
Homeowners insurance- Covers personal property kept in the home.
Landlord insurance- Does not cover tenant’s personal property. We recommend that you require your tenants to carry renters insurance.
The differences between these two types of insurance lies in how you use the property and the kinds of protection you need. As a landlord, you will have lower contents coverage needs, but your structural coverage needs may be higher. This is mostly because renters rarely care for your property in the same way that you would.
If you own a rental property, you can discuss your coverage needs with an independent agent who can further explain the benefits of having landlord insurance
Colorado landlord insurance can shield you from financial losses related to a number of potential hazards. The most common claims are due to damage to the structure of your property. This insurance can also cover any damage to separate garages, sheds and fences.
You'll also be protected against accidents and injuries that may occur on the home’s premises. This will help pay for legal fees and damages if a liability lawsuit is filed against you. The protection is varied and wide-reaching so you can receive 360 degrees of protection.
- Pays for repairs to your home and your personal property. Example: A severe storm uproots a tree and it falls on the rental property you own.
- Pays for accidents and injuries that occur on the premises of your rented home. Example: A guest of your renter trips on loose carpeting and breaks an arm.
Natural disasters can lead to expensive damage to your home. The following are the average claims amounts for common hazards in the US:
- Wind and hail damage: $17,000
- Water damage: $12,000
- Physical damage: $3,000
- Theft and burglary: $6,000
Average annual cost for landlord insurance in Colorado: $1,590
Landlord insurance costs are calculated according to factors like the home's size and value, the weather and crime risks in the ZIP code where the property is located, and the number of tenants who are occupying the home.
Rates are typically around 10% to 20% more expensive than traditional homeowners insurance for the same property would be.
Average annual cost for renters insurance in Colorado: $169
We strongly recommend that you require your tenants to carry renters insurance. This low-cost coverage can cover your tenants' personal belongings and pay for temporary housing if a disaster leaves the rental property uninhabitable.
More Insurance Options in Your State
- Denver
- Landlord Insurance
A whopping 51.7% of all homes in Denver are renter-occupied, and only 6.1% of homes in this city are currently vacant. On average, renters in this city pay $1,825 per month for their housing. All this serves to make Denver an excellent location for landlords.
One of the biggest risks faced by landlords in this city is property crime. Although the burglary rate in this state is lower than the national average, it is significantly higher in Denver. While your tenants' stolen property is covered by their renters insurance policy, if the burglar damages the doors, windows, or other parts of your rental home, your landlord insurance can cover the cost for repairs.
Find an independent insurance agent in or near Denver for help finding the best policy to cover your rental properties.
- Colorado Springs
- Landlord Insurance
In Colorado Springs, 42.9% of all homes are renter-occupied. With only a 6% vacancy rate in this city, landlords can easily find tenants to rent their properties. On average, landlords in Colorado Springs charge $1,514 per month for rent.
If you own a rental property, or properties, in Colorado Springs, one of the biggest risks you face is damage caused by severe storms, which can bring high winds, damaging lightning, heavy precipitation, and even flooding. While flood damage needs to be covered by a flood insurance policy, your landlord insurance can cover the cost to repair the other damage that these storms may cause.
Learn more about your landlord insurance and flood insurance options by talking to an independent insurance agent in Colorado Springs.
- Aurora
- Landlord Insurance
About 43.3% of all residential properties in Aurora are renter-occupied, and only 4.7% of the homes in this city are vacant. With an average monthly rent of $1,913, Aurora can be a very lucrative city for landlords. A good landlord insurance policy can help keep your investment profitable.
One of the biggest risks that landlords in Aurora face is damage caused by tornadoes. Tornado activity in Aurora is higher than the state average and is 39% greater than the national rate. One of the worst tornadoes in this area was an F3 twister that touched down less than 7 miles from the Aurora city center in 1988. It caused more than $5 million in property damage.
A local independent insurance agent can help you find a competitively priced landlord insurance policy that will cover you against tornadoes and the other risks you face as a landlord in Aurora.
- Fort Collins
- Landlord Insurance
In Fort Collins, 48.6% of all homes are renter-occupied. With only a 3.6% vacancy rate in this city, landlords can easily find tenant to live in their rental properties. On average, landlords in Fort Collins charge their tenants $1,615 per month for rent.
As a landlord in Fort Collins, one of the biggest risks you face is damage caused by wildfires. Colorado has one of the highest rates of wildfires in the US, and property owners in Fort Collins are at risk. One of the worst fires in the area was the High Park Fire of 2012, which was started by lightning and destroyed about 250 area homes.
Learn more about your various landlord insurance options by talking with an independent insurance agent in Fort Collins.
- Lakewood
- Landlord Insurance
An estimated 42.7% of all residential properties in Lakewood are renter-occupied, and only 3.6% of the homes in this city are vacant. With an average monthly rent of $1,893, Lakewood is an ideal location for landlords. A reliable landlord insurance policy can help keep your investment profitable.
One of the biggest risks that landlords in Lakewood face is damage caused by hailstorms. Large hailstones can cause significant damage to roofs, gutters, siding, and windows. One of the worst hailstorms to strike this area was the widespread Front Range hailstorm of 2017, in which golf-ball and baseball-sized hailstones caused about $1.4 billion in damage.
An independent insurance agent in Lakewood can help you find a competitively priced landlord insurance policy that will cover you against hail damage as well as the many other risks you face as a landlord in Lakewood.