Owning rental properties in Wyoming can be a rewarding way to make your investment portfolio grow. If you lease or rent homes to others, you need landlord insurance to keep your liabilities and property covered against financial loss. You can get quotes on a landlord policy tailored to the types of rentals you own. Landlord insurance works in much the same way a homeowners policy works. It provides coverage against property damage to your structures and grounds, and it provides extra liability coverage to protect you from the extra risks you face as a landlord. If you only own one rental property or rent a room in your home, you may be able to cover the rental with an endorsement on your homeowners insurance, but for multiple rental properties, you need a landlord insurance policy to adequately protect yourself.
It's a Great Time To Rent Property in Wyoming
- Median rent in WY is $742 as of 2012.
- This is a significant increase over the median rent in 2005, which was $627, and shows much faster growth than the national median.
- WY residents pay an average of 16% of their monthly income for rent, while nationally residents pay an average of more than 20% of their monthly income for rent.
- Only 30% of WY residents rent or lease their homes. Nationally, 36% of residents rent or lease their homes.
As more young, mobile professionals begin to take advantage of the low housing prices and beautiful landscapes of Wyoming, rents are increasing. Many real estate professionals recommend buying properties that are close to major employers, shopping and schools due to higher demand.
The Right Coverage for Property Damage
It can be hard to find tenants who take care of your property as well as you would like. Landlord insurance helps you protect your finances from the cost of damage to the apartments, condos, townhomes and houses you rent out. These are some of the covered events:
- Falling trees
- Flying debris
Landlord insurance typically covers all of the structures on your property, including the following:
- Main house or building
- Retaining walls
You are responsible for insuring your belongings such as furniture, electronics and clothing, but your landlord policy can cover the items that belong to you such as appliances, air conditioning units and maintenance equipment.
Landlord insurance typically does not cover special weather events like earthquakes, floods and mudslides are usually not covered by landlord insurance, but you can often get additional coverage to protect yourself from these events. Flood insurance is available in most communities through the National Flood Insurance Program. A local insurance agent can help you find out what coverage you may need.
Liability Coverage for Landlords
Renting a home to a tenant carries a wide variety of liability risks. That's why it's very important to stay up to date on current laws in your state and to keep a regular maintenance schedule for all of your properties. Landlord insurance includes liability coverage to protect your assets and finances from a potentially devastating legal claim against you.
Lawsuits can arise without much warning from causes such as these:
- A slip and fall on the sidewalk at your apartment building
- Toxic mold in the walls, causing tenants to grow ill
- A rental applicant who sues for discrimination
- A tenant who feels wrongfully evicted
- A break-in that occurs because of faulty window locks
Even if you do your best to stay on top of maintenance at all of your properties, accidents can happen. A legal claim against you can quickly surpass the six-figure mark and reach the millions, especially if you have sizable assets to protect. Landlord liability coverage can pay the cost of a settlement against you, including your legal defense, up to the limits of your policy.
For even more protection, you may need to consider an umbrella policy. Umbrella insurance provides extra liability coverage. It increases the liability limits of your homeowners, landlord, auto and business insurance policies and broadens the types of claims that are covered.
Other Landlord Coverage You May Need
In addition to the standard coverage provided in a landlord policy, you may also need to purchase the following:
- Workers compensation: For office staff and groundskeepers
- Loss of rent: To cover any lapse in income after a disaster
- Rental business insurance: To cover professional liability, fraud and other business risks
How To Get Discounts on Landlord Insurance
Between government-subsidized programs and insurance company discounts, there are many ways to reduce the premiums on a landlord policy.
- Grounds improvements: Add fire sprinklers, security systems, gates, outdoor lighting and other safety equipment to reduce risk to tenants and to get lower insurance rates. On the other hand, adding features like pools and hot tubs or allowing dogs on property could increase your rates.
- Insurance bundles: If you work with one agent to bundle all of your business, landlord, homeowners, auto and umbrella insurance, you could get significant discounts compared to insuring them separately.
Go Local for the Best Quotes on Landlord Insurance
Independent insurance agents are the best resource for landlord insurance quotes. Agents in the Trusted Choice® network are independent, local agents right here in Wyoming, who understand local risks and trends and can provide personalized service when you need it.
Contact an independent agent in your area to get customized quotes on business insurance, landlord insurance and any other coverage you need, at affordable prices.