The third most-populated city in the United States, Chicago is diverse, vibrant and filled with opportunity. More than half of this city’s housing is occupied by tenants, so it is a great place to buy a rental property. From the sought-after neighborhoods like River North and Gold Coast to the more affordable neighborhoods of Lincoln Square and Ravenswood, apartments in the Windy City do not stay unoccupied for long. If you are considering purchasing a rental property in this great city, you will need to look into Chicago, IL landlord insurance.
When shopping for an appropriate landlord insurance policy, you can turn to an independent agent in the Trusted Choice® network for assistance. Member agents can explain your coverage options and answer your insurance-related questions. These agents can use their relationships with a number of different insurance companies to provide you with a variety of competitively-priced policies from which to choose. Find a network agent in your ZIP code to start comparing Chicago landlord insurance quotes today.
- Nationwide, approximately 33.8% of all homes are renter-occupied
- In Illinois, about 32.5% of homes are rental properties
- In Chicago, an estimated 55.1% of all homes are occupied by renters
Investing in rental properties in Chicago can be extremely profitable. Rents costs here are higher than that national average, so while you may pay a lot for your initial investment, it should begin making money for you rather quickly. Of course, you will want to be sure that your property is properly insured so that your investment does not turn into a liability.
As a landlord, you cannot use a traditional homeowners insurance policy to protect your rental property. This is because homeowners insurance policies will not cover any damages done to a home that is renter-occupied. You will need a Chicago landlord insurance policy to cover any losses, damages or liability expenses you may face during your time as a lessor.
What Is Landlord Insurance?
Landlord insurance is a kind of homeowners policy specifically designed to meet the unique coverage needs faced by rental-property owners. You can expect a landlord insurance policy to be more expensive than a traditional homeowners policy; when tenants are involved, you face a greater risk of loss, damage and liability.
Homeowners tend to care for their property more diligently than tenants do. Do not expect that your tenants will inform you of every issue in the home, such as termite damage or water leaks, in a timely matter. Often, you will learn nothing about these problems until they require expensive repairs. Additionally, if your tenant has a party and an intoxicated guest is injured, you might be held liable for medical and punitive costs. A Chicago landlord insurance policy will shield you from these expenses so that your investment can continue to be profitable.
Average Rental Prices in Chicago
- Studio apartment: $1,024
- One bedroom: $1,121
- Two bedrooms: $1,336
- Three bedrooms: $1,704
Chicago Landlord Insurance Protects Against Property Loss and Damage
Your landlord insurance policy will provide you with coverage for damages to the structure of your rental property and to any surrounding structures such as sheds and detached garages. It will also cover loss or damage to any personal property that you keep in the rental home, including furniture, carpeting, appliances, and light fixtures. Your tenants will be responsible for covering their own belongings through a renters insurance policy.
There are a number of ways that your property may be damaged. Harsh weather, including severe thunderstorms, heavy snowfalls and strong winds, can lead to water damage, mold and rot within your home. Also, property crimes such as burglary, vandalism and arson can also result in expensive destruction to your property.
Chicago Property Crime Statistics
- A total of 26,420 burglaries occurred in this city in 2011
- This equates to 977.2 burglaries per every 100,000 residents
- By comparison, the US average is 702.2 burglaries per every 100,000 residents
The burglary rate in Chicago is significantly higher than the national average. Of course, this city is comprised of many different and distinct neighborhoods and some are safer than others. Regardless of the location of your rental property, burglary is a threat that you must consider.
Burglars often damage doors, windows and other property, which can lead to high repair costs for you. You can lower your risk by ensuring that your rental units are equipped with dead-bolt locks on all exterior doors, windows that lock and other security features. Make sure that all entrances to the property are well-lit and not hidden by trees or shrubbery.
Chicago Landlord Insurance Provides Coverage Against Liability
A Chicago landlord insurance policy will also protect you from liability if your tenants or their guests are injured on your property. If it is determined that the injury was a result of negligence on your part, you are liable for medical costs and could be subject to legal fees associated with a potential lawsuit. This can often be a tricky situation for landlords, particularly if they are not notified by their tenants about problems in the home.
Some examples of problems that might result in costly liability charges include loose floor boards in stairwells, carbon monoxide leaks from furnaces, or faulty wiring in the home. Your landlord insurance policy will cover any resulting liability expenses, and if you are sued in a court of law, your policy will also cover your court costs and legal fees.
Find Your Ideal Chicago Landlord Insurance Policy
In order to ensure that you are getting your policy at a competitive rate, it’s a good idea to compare quotes from at least three different insurance companies. Whether done by telephone or online, comparison shopping can be very time-consuming. You can save time and avoid hassle by working with an agent in the Trusted Choice network.
Your neighborhood independent agent can go beyond merely helping you find an ideal policy for your landlord insurance coverage needs. These agents can also advocate for you during the claims process, and might even be able to find ways to save you money on your other insurance policies. Find an agent in your ZIP code today to receive a variety of competitively-priced Chicago landlord insurance quotes.