There are more than 2.9 million housing units in Indiana, and as the state continues to boom, you may be considering renting out your property. Whether you own one home or have a growing real estate portfolio, when you open your property to someone else, you need landlord insurance to protect your investment.
Shopping for an adequate policy starts with a good independent insurance agent. Local to the state, agents understand the local housing market and can answer your questions about coverage. They'll work with you to find the best landlord insurance in Indiana to fit your needs.
How Much Does Landlord Insurance Cost in Indiana?
Landlord insurance will cost more than traditional homeowners insurance because there is more at risk when someone else is occupying your home. The average homeowners insurance in Indiana is $1,000, and rental owners can expect to pay 15%-20% more than that for landlord insurance.
Your insurance premiums will be calculated based on a number of factors that may increase or decrease your total cost. Traditionally, companies take the following into consideration when gathering quotes for landlord insurance.
- The amount and type of coverage you need
- Property size
- Number of units in an apartment or condominium rental
- Property location
- Local crime rates
- Property age
- Property amenities such as a swimming pool and access gates
- Installed safety measures
If your rental property does not have safety measures like burglar alarms and sprinkler systems, installing them could lower your premiums. Your insurance agent can also talk to you about potential discounts for loyal customers, bundling coverages, and other opportunities.
What Does Landlord Insurance Cover in Indiana?
When you rent out your property you need protection for damage to the property from natural causes or the tenants, liability risks for guests visiting the property, protection for any employees, and if your tenants stop paying their rent.
For individuals with single-family home rentals, adequate coverage is typically found through the following policies:
- Property damage insurance: This coverage pays for your buildings and any of your personal property if it's damaged by the tenant or natural causes like a storm, fire, theft, or vandalism.
- Liability insurance: This coverage pays for legal fees, medical bills, and repairs to property damage that affects a tenant or a guest visiting the property.
- Loss of income coverage: This insurance is designed to cover any lost income if you're unable to continue to rent out your property, like if your apartment complex catches on fire and all the tenants are evacuated for six months. Loss of income insurance helps cover the rent you would be receiving from tenants living in their rentals.
When choosing your coverage limits, you want to make sure your limits are equal to the total replacement cost of your rental.
What Additional Landlord Coverages are Available in Indiana?
If renting homes or apartments is your main form of income, there are some additional coverages you should speak to your insurance agent about.
- Workers' compensation: This coverage pays for employee injuries or illnesses that result in the individual not being able to return to work, temporarily or permanently. Workers' compensation is required in most states if you have employees working for you.
- Umbrella liability insurance: Umbrella liability insurance provides coverage above and beyond the limits of your standard liability policy. This is important coverage for property owners who are responsible for many tenants.
- Flood insurance: Damage from natural waters is excluded from landlord insurance. A flood policy will pay for any damage that's caused by a severe storm.
- Rent guarantee insurance: If a tenant stops paying their rent or is unable to pay their rent, this coverage will step in to cover the income you aren't receiving for a specific amount of time.
Your insurance agent can talk to you about any add-on coverages or other policies that may benefit you and your rental situation.
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Is Landlord Insurance Required in Indiana?
Whether you have to purchase landlord insurance in Indiana is determined by the type of rental you have.
- Short-term rental properties: If you're planning to rent out your home one time for a short period, your homeowners insurance may extend to the renters. Some companies may require you to purchase a rider to extend your coverage. If you plan on continual short-term rentals, your homeowners insurance will not cover any damage that occurs when you are not personally occupying the home.
- Long-term rentals: If you plan on renting out your home for more than six months, you will need landlord insurance to protect your property and tenants.
Similar to homeowners insurance, if you have a mortgage on your property your lender is likely to require you to purchase liability and property damage coverage.
What Are the Best Landlord Insurance Companies in Indiana?
When it comes to finding the best landlord insurance companies in Indiana, you'll have a lot of options. That's why it's important to shop multiple quotes before making a decision. This can save you money and ensure that you're with the best carrier.
Since companies are located across the state, a local independent insurance agent can help you shop quotes for landlord insurance in Indiana. They'll know the top-rated companies in your area for customer service, affordability, and settling claims.
How Can an Independent Insurance Agent Help Me Find the Best Landlord Insurance in Indiana?
Obtaining proper insurance for rental properties requires a variety of steps and knowledge that a local independent insurance agent has. They understand the local housing and rental market and have worked with a variety of landlords to get coverage.
Agents will talk with you, free of charge, to learn about your rentals and make recommendations on the best landlord insurance in Indiana. They'll shop multiple quotes and guide you in choosing a policy that protects your investment and your tenants.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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