We'll Help You Find the Best Landlord Insurance in Minutes

When you're a landlord, you're not only a property owner, you're also a business owner—and your insurance should be designed to cover both hats you wear. That's what landlord insurance is for. 

It shouldn't matter if you’re just renting out a spare room for cash or you're the proud owner of a large portfolio of properties, landlord insurance is a must. And when it comes to finding the right blend of protection at the perfect price, an independent insurance agent is a must.

Independent insurance agents are absolute pros when it comes to landlord insurance. They'll shop options from some of the best companies, bring multiple quotes to the table, and help you compare each and every one. 

What Is Landlord Insurance?

Simply put, it's a contract between you and an insurance carrier where you pay them a premium and in return, they help you protect your real estate investment. It combines both business and homeowners insurance all in one comprehensive little package, giving landlords the coverage they need to protect their property and their tenants. 

Your coverage will include protection from unique risks landlords face, such as the following.

• Commercial property insurance: Covers damage to your rental properties due to fire, natural disaster, theft, vandalism, and similar causes.
• Liability insurance: Covers the cost of legal representation and any damage if you’re sued by your tenants (or anyone else).
• Loss of income: Covers rental property income if they become uninhabitable or you stop receiving rent payments for any other covered reason. 
• Workers' compensation: If you have employees, like maintenance workers and property managers, workers' comp covers their medical costs if they’re injured on the job. 

Many companies sell landlord insurance packages that combine all this coverage for you. Typically, landlords start with a basic cookie-cutter package while their business is small and expand into custom coverage as their empire grows. 

With an independent insurance agent in your corner, you have a trusted advisor who can help you adjust your coverage up or down as your business needs change. Easy as that.

What Does Landlord Insurance Cover?

All landlord insurance policies contain different coverages. There's a beginner's basic policy that includes the minimums, but when you work with an independent insurance agent, you'll get coverage tailored specifically to your needs. But at a bare minimum, your landlord insurance should cover the following.

• Property damage: Covers loss after most natural and human causes (except flood protection, which is insured separately)
• Liability: Helps cover legal representation and damage if you're sued
• Loss of use: Helps support your business financially if your property is uninhabitable and can't receive rent

But if you continue to grow your properties, you should consider additional landlord coverage options, such as the following.

• Umbrella liability: Additional liability coverage that extends your liability coverage limits beyond your standard landlord insurance
• Workers' compensation: Protects both your staff and your business if an employee is injured on the job
• Appliance coverage: Helps protect boilers and other expensive on-site equipment 
• Inland marine coverage: Covers equipment that moves from property to property, like lawn mowers or snowplows.

Independent insurance agents are experts who can help create the right landlord insurance coverage to balance the protection you need with the price you can afford.

What about Flood Insurance?

Flood insurance is an important type of property insurance coverage that works a little differently than normal commercial property insurance. It’s federally regulated and a key piece of important coverage if your property lies within FEMA-declared flood zones. 

Flood insurance, however, isn't included with your standard policy, and if you own a rental property in a flood zone, you'll likely be required to purchase flood insurance separately to add on to your protection.

Even if you’re not in a designated flood zone, buying flood insurance is a good idea. As you can imagine, floods are extremely destructive and very expensive and if you're caught without coverage, your rental empire could crumble pretty quickly. 

How Much Does Landlord Insurance Cost?

That depends. As you can imagine, the cost of insuring a rental duplex versus an urban high rise is a big difference. Landlord insurance typically costs 15%-20% more than comparable homeowners insurance for the same property. That’s because of the extra coverage needed, like liability coverage.

If you're wondering how rates are determined, just know that the largest factors in determining your insurance cost are the building’s size, location, age, special features, and any extra risks of natural disaster or crime. 

Landlord Insurance Discounts

Insurance discounts work a little differently from the discounts you get at the grocery store. Instead of taking a flat 10% off the top, insurance discounts are typically based on the unique risks and safety features of your business.

Landlords pay more for their insurance than regular homeowners, but they may also have access to better discounts. Here are the most common types of landlord insurance discounts.


 
  
    
      
  
 
 
     
    
 
 
  
 
    
 
   
   
   
 
 


Discount Type	Description
Safety Discounts	Preventative measures that help lower the risk for the carrier, like installing security and smoke alarms, fire extinguishers, etc.
Bundling Discounts	Carriers love having more of your business, so when you insure multiple policies with the same insurer, they reward you.
Group Discounts	Certain unions and groups, like teachers and veterans, receive discounts with a number of different insurance carriers.
Loyalty Discounts	Insurers love customers who stick around, so they’ll often reward those who’ve remained loyal with a nice little discount.

Your Independent Insurance Agent Has Your Answers

Whatever you need, your agent has your back. With a brief intro into the terms, discounts, and process of your homeowners insurance, you know the kinds of questions to be asking. Your agent will ask you all about your home, its use, and your goals to help find the perfect blend of coverage at the right cost for you.