The Keystone State offers many rental property investment opportunities. If you've invested in a house, apartment complex, condo or other property that you rent out to tenants, it's a good idea to research some of the risks you face. To prevent large financial losses from liability lawsuits, property damage, or weather events, consider a Pennsylvania landlord insurance policy that fits your needs and budget.
An independent Trusted Choice® member agent can help you compare landlord insurance companies, coverage options and Pennsylvania landlord insurance quotes. Contact a Trusted Choice member agent and get started today.
Pennsylvania Rental Facts
- 873,671 out of 13,183,151 housing units in PA are apartments
- 7% of PA households are rental apartments
- 16% of households in Philadelphia, PA are rental units
What Risks Does Pennsylvania Landlord Insurance Cover?
While similar to homeowners insurance, landlord insurance also protects against additional risks that homeowners simply do not face. When you have tenants living on your property, you have a few other items to consider. Homeowners insurance and landlord insurance have the following common coverage options:
- Property damages: This insurance covers damage to the property from weather or natural disasters. It also provides protections against accidents, such as a tree limb falling on the house or a fire destroying several units in a large apartment complex. It can also protect garages, sheds, etc. on the property.
- Personal property: This coverage protects your personal items in the house or on the property. Normally it would include appliances inside the house, as well as tools and equipment kept in garages or sheds.
- Liability: This insurance covers you if your tenant or other third party is injured at your rental unit(s) or on the property grounds. It would also cover third party property damage. It provides legal defense and payment of claims that are deemed to be your fault or due to your negligence. This insurance can cover personal injury, which is defined as harm or injury to a person's reputation, including slander, libel, false arrest or false eviction.
Additional Coverage Options Landlords Need
A typical home owners policy will cover all the contents of the main dwelling, but this is not the case with a landlord policy. The responsiblity is put on the tenant to carry some type of renters insurance to cover personal belongings.
The only time you would be responsible for a tenant's property is if you caused the damage somehow, typically due to negligence or lack of upkeep of the rental unit. For example, if a piece of the ceiling fell and broke your tenant's television, you may be held liable for the cost of the damage. If you are leasing a furnished apartment, you would be responsible to cover anything you own in the house.
As a landlord, you may also want to consider some additional coverages to protect your business interests:
- Loss of rent coverage: This insurance protects you if the your property is unable to be lived in or rented due to a covered loss; it covers your rental revenue at fair market value.
- Inflation protections: Some insurers will increase your coverage limits to keep up with inflation; this insurance helps lock in your rates.
- Workers compensation: If you employ others you may be required to carry workers compensation, this is a good coverage to carry. It will pay medical costs and cover the workers wages if they are injured at the job or unable to return to work as the result of a work-related sickness or injury. State laws vary, so check with your local Trusted Choice member agent for details in your state.
- Umbrella liability: This is definitely a good policy to carry if you own multiplie units or assets, as it provides coverage limits above the standard landlord policy. The protections usually extend beyond the rental properties to all your business and personal activities.
Does Landlord Insurance Cost More Than Homeowners?
The cost of a landlord insurance policy is, on average, 25 percent higher than a homeowners policy by most estimates. This is due to the higher risk the landlord is taking on by having a tenant who may cause damage to the property. When there are multiple units close together, there is a higher likelihood of damage from a fire or other mishap, as well. Other risks to consider are liablity issues related to common areas like swimming pools or laundry facilities.
Also, the cost of the policy is affected by the size, value and amenities in your unit or units, as well as the appliances or equipment you have on the premises. An independent Trusted Choice member agent can help you structure your coverage for maximum protection and savings.
Pennsylvania Landlord Insurance Gives Peace of Mind
When you rent properties to tenants, you deal with hassles and risks most homeowners are not exposed to. A Pennsylvania landlord insurance policy will protect you and provide you peace of mind.
Contact an independent Trusted Choice member agent today. Your local agent will compare mutiple companies, policies and costs to find you the Pennsylvania landlord insurance quotes that suit your real estate investments. Find an agent in your area today to get peace of mind when you rent out your valuable property.