The state of Hawaii may be one of the top vacation spots for U.S. residents, and many vacationers consider making the Aloha State their home. However, quirky laws and high prices in the region can seem off-putting. Landlords need to abide by a handbook of rules and keep up with laws and legislation. Landlord insurance is one crucial way to make sure you're protected from the lawsuits and financial burdens that can come with being a landlord.
Hawaii Rental Statistics
- The average rent is $1,383 per month, which is much higher than the U.S. average.
- The vacancy rate is 9.06%, which is higher than the U.S. average.
- On average, almost 25% of income goes toward rent.
- Over 41% of residents are renters, which is much higher than the U.S. average.
With such a high rate of rentals, landlords are constantly on the go, with maintenance calls, landscaping needs, or screening new tenants. With the large host of laws and requirements that landlords in HI must abide by, it's no wonder that many find themselves overwhelmed. Add vacation rentals and tourists to the mix, and you have the potential for legal nightmares all year long.
What Is Landlord Insurance?
Landlord insurance is a group of policies offered together in order to protect HI landlords from some of the most common risks and disasters that can occur. Many landlords are property owners, and will notice that landlord insurance closely resembles a homeowners policy. The most common landlord insurance policies resemble the following:
- Property insurance: This icovers any property that belongs to the landlord, including the structure, piping, electrical and flooring.
- Liability insurance: A landlord liability policy can protect you from lawsuits claiming that an action or inaction caused injury to the tenant or a visitor.
- Loss of use: This coverage is designed to help replace any lost income as a result of a covered disaster, such as a weather-related event.
- Other non-covered incidents: It's a wise idea to consider getting coverage for non-covered incidents, such as earthquake s and floods.
- Umbrella insurance: Umbrella insurance can offer you extra liability above and beyond what you currently have.
What About Tenant/Renters Insurance in Hawaii?
Some landlords require their tenants to carry renters insurance in order to secure a rental agreement or lease. This policy can cover both the liability exposures and the property of the tenant. The average tenant owns over $20,000 in personal belongings and assets, so a renters insurance policy is a wise idea for both tenants and landlords.
What Will My Landlord Insurance Policy Quote Look Like?
The cost of a landlord insurance policy can vary greatly. The insurance needs of someone with one rental home compared to an entire complex will differ immensely. Additionally, shopping for landlord insurance policy quotes online or in person can be time consuming. Having as much information available as possible can help you and the insurance agent move through the quote process as smoothly as possible. Make sure to be aware of the following:
- Location of rental
- Size of rental (number of units)
- Age of rental
- Value of rental
- Whether property has floors, stairs, or elevator
- Whether rental has pool, playground, or fitness center
- If property will be rented to those who own pets/smoke
- Desired coverages
- Desired deductible
- Whether plumbing/electrical is up to code
- If security system is in place
- If fire equipment is in place
- History of claims
All of these factors, plus more, will be used to give you a quote that will offer you the best coverage for your individual situation.
Are Discounts Available on Landlord Insurance Policies in HI?
Just like many other insurance policies, a number of discounts are available on landlord insurance policies in HI. These discounts may include the following:
- New policy discount
- Loyal customer discount
- Multi-policy discount
- Claims free discount
- Paid-in-full discount
- Professional/industrial affiliation discount
Each insurance company offers its customers different discounts, so it's important to ask about every available discount in order to ensure you're getting the best price possible on your policy.
Thinking of Purchasing Landlord Insurance? Look No Further.
When you make the decision to carry landlord insurance, it's important that you get a policy that's tailor-made for your individual needs. A Trusted Choice® agent is always available to help answer questions, suggest policy modifications, or even help you file a claim. Trusted Choice agents are committed to getting you the best policy at the right price.