Being a landlord is a tough job. From landscaping to maintenance, you can be responsible for all of it. Maryland has a very high number of renters, and each one has individual expectations and needs. They also have possessions and assets that they protect and hold dear.
Some of the biggest risks landlords face are liability claims, natural disasters, and lawsuits stemming from accidents. Landlord insurance is one way to help protect your finances and assets from these incidents.
Rental Statistics in MD
- Over 30 percent of Maryland residents are renters.
- The median rent in Maryland is $1,170.
- Estimated landlord insurance cost per year: $1,397.
- Increased risk of theft in rented homes: 50 percent.
Landlord insurance can help protect your property and your financial picture by offering insurance policies to cover some of the most common risks you face as a landlord and property owner.
What is Landlord Insurance?
Landlord insurance is a set of policies designed to cover you from the risks you face. A typical landlord insurance policy in MD may resemble the following:
- Property insurance: Property insurance can cover any buildings you own, along with the electrical, plumbing, flooring, and any large appliances that are present in the rental.
- Liability insurance: We live in a litigious society. Even small incidents, like a slip and fall, or a small water leak, can turn into a large lawsuit. Liability insurance can help protect you from these risks, and also help pay for your legal defense, if needed.
- “Loss of use”: If your rental is damaged and can't be inhabited, this insurance can help cover the income loss you'll face while repairs are being made.
- Other non-covered incidents: There are other coverages available for landlords, such as earthquake and flood insurance. With the frequency of hurricanes in Maryland, flood insurance can be a wise investment.
- Umbrella insurance: Typically sold in $1 increments, these insurance policies can increase your liability limits on many of your policies.
How Much is a Landlord Insurance Quote in Maryland?
An average of $1,397 is not a quote, and your rate may be lower or higher depending on any of the following factors:
- Location of rental
- Size of rental
- Number of units
- Age of rental
- Building materials
- If security system is present
- Whether fire sprinklers are installed
- If rental is gated
- If you have a pool
- If you rent to smokers
- If you allow pets
- If plumbing/electrical is up to code
- Desired coverage
- Desired deductible
All of these factors will be considered when giving you a quote, to make sure you are getting the most accurate coverage.
Is Landlord Insurance in Maryland Tax Deductible?
As a landlord, you're able to deduct business expenses on your taxes. Landlord insurance is considered a business expense and, as such, is tax deductible, giving you even more reasons to get a landlord insurance policy to cover your rentals.
What Does Landlord Insurance Cover in Maryland?
Landlord insurance can cover a variety of events. For example:
- If your rental property is damaged due to rain, fire, or wind, your property damage can work to help you get the repairs you need.
- If someone slips and falls on your property, your liability insurance is designed to help you cover legal costs, and can also help pay for the damaged party's medical expenses.
- If someone hits your rental during the night and drives away, leaving a hole in the wall, your property coverage may help repair the damages.
These are just a few of the situations where having a landlord insurance policy in place can help you avoid large financial pitfalls.
Additionally, landlord insurance does not cover the tenant's personal belongings. If a tenant is interested in having their belongings covered by insurance, they need to purchase a renters insurance policy.
Are There Discounts Available on Landlord Insurance in Maryland?
There are, typically, many insurance discounts available on landlord insurance in MD. These discounts may include the following:
- Multi-policy discount
- New customer discount
- Loyal customer discount
- Security system discount
- Professional group discounts
- Upgraded property discounts
Each insurance carrier offers different discounts, so be sure to ask about any discounts you may not be aware of.
How Do I Get Landlord Insurance in Maryland?
Making the decision to get landlord insurance is important. Having a professional by your side that's familiar with your needs is crucial in getting the coverage you need. A Trusted Choice® agent is always available to help you discuss coverage options, find discounts, or even help you file a claim.