There are currently about 200,000 renter-occupied homes in the state of Utah. Rental properties make up more than 28 percent of all housing in this state. If you are one of the many property owners who lease out homes in Utah, you can protect your investment by obtaining a suitable landlord insurance policy. Regardless of whether you are renting out a traditional family home in Salt Lake City, a luxury apartment in Sandy, or a studio flat on a short-term lease to a visiting professor in Provo, this coverage is necessary to prevent undue financial losses.
Landlord insurance is designed to shield you from the various potential hazards you face so that your rental properties can continue to generate a profit. To be sure that you are getting your coverage at a reasonable rate, you may want to compare a variety of landlord insurance quotes in Utah.
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Median Gross Rent in Utah’s Largest Cities
- Salt Lake City: $761
- West Valley City: $893
- Provo: $684
- West Jordan: $898
- Orem: $904
- Sandy: $998
- Ogden: $704
- St. George: $801
Why Lessors in Utah Need Landlord Insurance
A traditional homeowners insurance policy will not provide compensation for damages to your property if it was occupied by tenants at the time the damage occurred. If you want to be covered against loss, damage, or liability expenses associated with your rental property, you will need to have a landlord insurance policy. As a landlord, you are not responsible for providing coverage for property owned by your tenants. They will need to acquire this coverage on their own through a renters insurance policy. You are, however, responsible for covering damages that may occur to the structure of the home as well as any of your own personal property that is kept inside it.
You also need additional coverage suitable for your increased liability risks. When you call to request landlord insurance quotes for your Utah properties, you may find that you are quoted rates that are higher than what you had expected. Because there are greater inherent risks involved when tenants occupy your rental properties, landlord insurance policies typically run about 25 percent higher than traditional homeowners insurance.
What Landlords in Utah Are Charging for Rent
- Less than $200: a total of 6,470 renters, making up 3.3%
- $200 to $299: a total of 8,853 renters, making up 4.5%
- $300 to $499: a total of 41,783 renters, making up 21.0%
- $500 to $749: a total of 83,798 renters, making up 42.2%
- $750 to $999: a total of 30,337 renters, making up 15.3%
- $1,000 to $1,499: a total of 12,249 renters, making up 7.2%
- $1,500 or more: a total of 2,708 renters, making up 1.4%
- No cash rent: a total of 10,518 renters, making up 5.3%
- The median cost to rent a home in Utah: $597
Landlord Insurance Protects Against Liability
An important feature of landlord insurance is liability coverage. This coverage is meant to protect you if your tenant, or one of your tenant’s guests, is injured or suffers property damage and it can be shown that negligence in upkeep on your part is to blame. Examples of some things you might find yourself held liable for include:
- Illnesses caused by carbon monoxide or gas leaks in the home
- Accidents resulting from poorly maintained stairwells, walkways or other parts of the home
- Damages or injuries caused by a fire that resulted from wiring in the home that was not up to code
If negligence in upkeep causes your rental home to become uninhabitable and your tenants are forced to seek temporary housing, you may also be responsible for compensating them for the costs associated with temporary lodging, including meals. Fortunately, your landlord insurance policy may be able to cover all of this as well any associated court costs or legal defense fees up to your coverage limit.
Recent Utah Burglary Statistics,
- Nearly 13,000 burglaries were reported in UT.
- The national burglary rate is 6.70 burglaries per every 1,000 residences.
- The UT burglary rate is 4.53 burglaries per every 1,000 residences
- The UT city with the highest burglary rate is Ogden, with 10.16 burglaries per every 1,000 residences
Fortunately for residents of this state, property crime is low and this is reflected in the premiums assigned to landlord insurance policies. Of course, if the property you are renting out is in a higher-crime area such as Ogden or Riverdale, you can expect your rates to increase.
Landlord Insurance Covers Against Property Loss and Damage
Any time you have a renter-occupied home, a reasonable amount of wear and tear is to be expected. Unfortunately, tenants sometimes cause damages that go well beyond what is considered reasonable. This might happen if they allow sinks or bathtubs to overflow, are careless with candles or cigarettes, or even if they fail to report a problem, such as a pest infestation, to you. Your landlord insurance policy may be able to compensate you for the resultant damages.
In addition, certain weather events, such as a severe thunderstorm or a tornado, can lead to damages to both the structure of your rental home and your personal property—such as flooring, appliances, and light fixtures—that you include within the home. Landlord insurance covers most weather-related incidents, with the exclusion of floods and earthquakes. For these, you will need to purchase a separate flood insurance policy and an earthquake insurance endorsement in order to be fully covered.
Finally, burglaries and other property crimes, such as arson or vandalism, may result in property loss or damage to your property. You are not responsible for compensating your tenants for their personal belongings if they are lost or damaged, but you will need to cover the costs to repair any of your own damaged property, including the home. You can file a claim under your landlord insurance policy to get compensation for these losses.
Landlords in Utah Can Easily Compare Insurance Quotes
Comparing landlord insurance policies and quotes for your Utah rental property is necessary if you want to ensure that you are getting a comprehensive policy at a reasonable rate. Working with an independent insurance agent in our network can help you streamline the comparison-shopping process. These agents work with several highly-rated insurance companies so they can quickly and easily provide you with an assortment of policies and rates from which to choose.
Contact an agent in or near your Utah neighborhood to learn more about landlord insurance. Your agent can help you start comparing quotes in no time.