Connecticut is a beautiful state with an active economy. It has the one of the highest costs of living in the nation, along with the highest per capita income in the country. Whether you own an apartment complex, townhouses or houses in Connecticut, landlord insurance is a must to ensure that you protect your investments. Before you decide on a specific policy, you probably want to contact a local agent for information and to get quotes from reliable insurance companies.
Snapshot of Rental Landscape in CT
- On average, rental properties rent for $1.07/sq. ft.
- A one-bedroom apartment rents for $995 on average.
- New Haven, Stamford and Waterbury are three of the most popular cities for apartments.
- There were over 56,000 cases of theft in 2012.
- Over 14,000 burglaries occurred in 2012.
- There were over 6,400 motor vehicle thefts in 2012.
Living in Connecticut is expensive, and, as a landlord, you want to have an attractive, safe property for potential tenants. Having landlord insurance is a safety net for you in case of fire, vandalism, damage or injury.
What Does Landlord Insurance Cover?
Landlord insurance can include as much or as little as you need. There are many different types of coverage available so you can be sure that your property is covered:
- Property damage: This coverage provides protection for your property against fire, theft, damage and vandalism. It does not cover the tenant's assets. However, it does cover damage that a tenant may cause.
- Liability insurance: Unfortunately, accidents happen. If someone suffers injuries on your property, the person may try to find you at fault. Also, if you are liable for damage to tenants' assets through negligence, the tenant has a right to file a liability claim. Unfortunately, a small injury or lawsuit can turn into a huge monetary burden, so this insurance is important to have.
- Loss of income: If a covered event occurs and you're unable to rent out your property, you lose that income. Loss of income insurance can ensure that you remain financially stable during this time.
- Optional available coverage: There are many other types of insurance available, such as natural disaster insurance, umbrella insurance, rent guarantee insurance, employer liability insurance and landlord contents insurance. Each of these is important for you to consider.
Being a landlord can be a difficult job, and keeping a property safe and free of hazards seems next to impossible. If someone slips on an icy sidewalk or a hailstorm breaks a window and destroys priceless artwork, having insurance to back you up can make the difference between a quick claim and a costly lawsuit.
Landlord insurance does not cover damage that tenants do to their own assets. Many times, tenant insurance is termed "from the studs in," meaning it covers everything from the studs to the interior of the apartment. Your landlord policy should specify what it does and does not cover plainly and clearly in your rental agreement.
How Much Does Landlord Insurance Cost in Connecticut?
There is no average cost for landlord insurance, as each landlord requires different coverages and policy limits. However, your insurance company will consider the following when quoting you a price for landlord insurance:
- The address of the property, along with the age of the building
- Price/Date of purchase
- Any amenities that could pose a risk to the tenants, including sports courts, pools and gym facilities
- Any upgrades/improvements, including security features
- Claims history, along with any insurance policies currently in place
- Any additional buildings, such as laundry facilities, maintenance sheds, garages, etc.
- List of employees, along with a copy of the lease
- Whether electrical/plumbing is up to code
- Whether there are gates
- Whether smoking is allowed
Insurance companies consider all these factors when calculating a quote to be sure you have adequate coverage for whatever comes your way.
How To Compare Landlord Insurance Quotes
One quick search of the Internet isn't going to give you an adequate picture of the level and cost of coverage you should get. In order to compare landlord insurance rates successfully, first, you need to decide what protection amounts you need. For example:
- Replacement cost coverage on all dwellings and other structures
- Coverage for the following hazards: fire, smoke, lightning, wind, hail and ice damage
- Coverage for water damage from broken/burst pipes
- $1,000,000 in landlord liability
- $5,000 of medical payments coverage
- Loss of use coverage in the event that your rental becomes uninhabitable
- Contents coverage for anything you supply to the tenant
Once you get a clear idea of the coverage you need, you can more adequately compare rates between insurance companies.
How To Get Landlord Insurance in Connecticut
Being a landlord is a tough job. But finding the right insurance for yourself and your properties shouldn't be. A Trusted Choice® agent is always available to help you review your current coverage, help you add additional coverage and even help you file a claim.
Contact your local Trusted Choice agent for landlord insurance information and quotes.