Whether you're looking to rent out your beach house on Fenwick Island or you are the owner of an apartment building in Dover, as a landlord you're responsible for obtaining landlord insurance to cover your investment and for the safety of your property.
Landlord insurance is a combination of business insurance and homeowners insurance which a local independent insurance agent can help you secure. The best landlord insurance in Delaware protects your tenants as well as your property in the event that someone is injured or there is a devastating event.
How Much Does Landlord Insurance Cost in Delaware?
Landlord insurance premiums change considerably based on several factors. Since you're responsible for a property and the people occupying it, there are multiple things that can increase your premiums. Typically, landlord insurance costs 15-20% more than homeowners insurance. In Delaware, the average homeowners insurance policy is $833.
Some of the factors that insurance companies will take into consideration when gathering landlord insurance quotes in Delaware include:
- The size of your rental
- How many units you have if you own an apartment or townhome
- The location of your property and local crime rates
- The age of the property
- The type of coverage you're purchasing and the amount
- Your deductible
- If your complex has a swimming pool
- Whether you've installed proper safety prevention methods like burglar alarms and sprinklers
- If you have access gates or not
Landlords can often receive a discount on coverage for having certain safety measures in place, bundling coverages, group discounts, or loyalty discounts. Your local agent can help determine if you qualify for any discounts.
Is Landlord Insurance Required in Delaware?
Chances are you've worked with a lender to secure your rental property, and if so, your lender will require that you have landlord insurance. If you own your property outright, Delaware state law does not require landlords to have coverage.
Even if you're not required to have it, this protection is important because your homeowners insurance will not cover property damage or liability claims if you're not living on the premises. For apartment and condominium owners, your rentals are your business and are at risk of damage from severe weather, vandalism, and other events.
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What Does Landlord Insurance Cover in Delaware?
Landlord insurance is designed to protect you from all of the possible risks you face by owning a property that you don't occupy and having third-party individuals on your property. Whether you rent a single home or multiple properties, your landlord insurance policy can consist of the following coverages:
- Property damage: Your commercial property insurance policy covers your buildings and personal property from damage due to storms, fire, theft, vandalism, and damage done by the tenant.
- Liability insurance: Covers any third-party injuries or property damage that may occur on your rental property. This can be a tenant getting injured or a guest who is touring the property. Liability insurance helps pay for medical bills and any potential legal fees if you get sued.
- Loss of use: Covers any costs should your rental property become uninhabitable as a result of a fire or other covered loss.
If you own several rental properties, there are additional coverages you should talk about with your independent insurance agent.
- Worker's compensation: If you employ staff to help you maintain and run your rental properties, you'll likely be required to purchase workers' compensation for employee injuries and illnesses.
- Umbrella liability insurance: If you have a lot of tenants, then umbrella liability insurance will provide coverage above and beyond the limits of your standard liability policy.
- Rent guarantee insurance: This protects you financially if your tenants become unable to pay their rent.
Depending on your situation, there may be additional coverages you could benefit from. Your agent can help you determine other policies that may suit your needs.
The Benefits of Delaware Flood Insurance
If your rental is located near the coast, you will want to consider purchasing flood insurance. Standard landlord insurance does not cover damage from natural waters. Currently, 22,000 people in Delaware are at risk of coastal flooding.
Your agent can help you purchase flood insurance, which is offered through the National Flood Insurance Program.
Who Are the Best Landlord Insurance Companies in Delaware?
Shopping for insurance looks different for every landlord, which is why it's important to obtain multiple quotes before making a decision. When looking for the best landlord insurance companies in Delaware, you want to consider customer service, claim processing times, and affordability.
Independent insurance agents are located across the state and will know the top-rated companies in your area.
How Can an Independent Insurance Agent Help Me Find the Best Landlord Insurance in Delaware?
Agents shop multiple quotes to find you the most affordable and comprehensive coverage available. They remain available long after you've purchased your coverage in the event that you need to file a claim or update your policy. Work with an agent today to find the best landlord insurance in Delaware.
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