In Minnesota, purchasing residential properties as a source of income or investment is popular. Minnesota Public Radio announced that rents were higher in the state than in any other Midwestern state. Property owners and landlords need to take as much care insuring these properties as they do with their own personal residences. Choosing the right Minnesota landlord insurance may be the key to securing your investment for the future.
A captive agent can only offer you coverage from the company he works for. However, to get a policy that meets your needs and budget, compare Minnesota landlord insurance quotes and plans to make sure you find the best deal. Your independent agent in the Trusted Choice® network will provide you with insurance advice and offer you competitive price quotes from multiple insurers. You can find a Trusted Choice network agency in your town.
- Percentage of Minnesotans who rent apartments: 11%
- Estimated yearly cost of Minnesota landlord insurance: $1,226
- Estimated increase in the cost of coverage for landlords, vs. homeowners: 25% more
Being a landlord comes with a very different set of risks than those of homeowners who occupy their own homes, which is reflected in the higher insurance costs. For example, tenants may not take the same care with a property as an owner would. A landlord also takes on increased liability risks, due to the activities of both tenants and guests on the rental property. Additionally, if an incident such as a fire requires a property to be repaired or rebuilt, there is a risk that a rental property will be vacant, which means the landlord risks a loss of income.
What Is Minnesota Landlord Insurance?
As a property owner, you will need to cover your building and other structures. Your tenant will probably not be responsible for your home’s roof, for example, unless he knowingly did damage to it.
You may also have some liability concerns that you share with your tenants. For example, if your tenant or a guest is injured because of a repair issue you should have known about and fixed, the injured party might name you as liable. If the tenant’s guest is injured because of the renter’s negligence, the renter may be liable instead. In some cases, you may both be named as liable in a suit.
Here are some basic types of Minnesota landlord insurance to discuss with your indepedent agent.
- Property insurance: This covers your building and external structures. It may also cover any of your property you leave inside the rental home. Some examples may be large appliances or carpets.
- Liability insurance: This protects you in case a visitor, neighbor, or tenant claims your negligence caused them property damage.
- Loss-of-Use: This policy option may compensate you for rental money if your home is vacant while being repaired after covered damages.
Should Landlords Require Renter’s Insurance?
Your Minnesota landlord insurance policy should not have to cover your tenant’s personal property unless it is damaged as a result of your negligence.
Many MN landlords require tenants to purchase renters insurance as a part of the lease agreement. Typical renter’s insurance policies are relatively inexpensive, and this extra protection helps protect both you and your tenant in case either of you suffers a loss or damages.
You can discuss the costs and benefits of Minnesota landlord or renters insurance with your independent Trusted Choice member agent.
Compare Minnesota Landlord Insurance Quotes
In order to protect your rental property business and your budget, shop around for the best plans and prices. Busy landlords can save time and money by contacting an independent agent in the Trusted Choice network.
These independent agents are free to shop the market for competitive Minnesota landlord insurance quotes. You can also count on your independent agent to provide advice and professional service.