Landlord Insurance Cost

So How Much Is Landlord Insurance Gonna Cost?

(Not as much as you might think, neighbor)

Christine Lacagnina | July 22, 2018
Colorful row townhouses

It doesn’t matter if you’re renting out your spare house or landlording as an investment venture, you need insurance protection. But the more you spend on insurance, the less you make. And making less is not ideal.

But here's the good news—our independent insurance agents shop and compare insurance policies and rates from a number of carriers. This means they can find the right coverage for your unique needs at the best possible price. Now, you’ll spend less on insurance, and make more. Problem solved. 

But before we get too far ahead of ourselves, we want to give you a little intro about how insurance companies come up with the rates and costs that they do.

How Landlord Insurance Costs are Calculated

The great insurance oracles look through a long list of possible risk factors (things like size, location, etc.) and the associated costs for repair or replacement. Then, they add everything up based on your needs, tack on a bit of profit margin, and *abracadabra,* you’ve got a quoted insurance premium.

Now, for the most part, your rates will remain the same throughout the life of your policy. The only things that can really change it would be filing a claim, changes to your property’s value, or if the financial demands of the plan increase dramatically and cause the provider to raise it. Just a quick heads-up.

What Is Landlord Insurance and Why Do I Need It?

Landlord insurance is protection for landlords and their properties. If their rental property is damaged by fires, break-ins, accidents or other dangers—not including collateral damage due to epic superhero battles—they can recoup the expenses to get themselves back up and running.

Now, maybe you’re thinking, “Hey, that couple renting my beach house seems nice, I shouldn’t need insurance.” And if you are, think again. Even if they do seem nice, imagine they have another nice couple come over for a friendly game of Mahjong. If one of the visitors trips on a loose step, they can send all their medical bills your way. And that ain’t gonna be cheap. 

If you still have any questions l about whether you need landlord insurance, talk to an agent. They’ll help you find the right answers, and peace of mind.

What Kind of Landlord Insurance Coverage Do I Need?

Landlording can be a great way to make some nice side cash, but it can potentially be super-costly, too. After all, you've got all kinds of strangers running around doing goodness-knows-what, the threat of angsty street vandals, and a whole lot more to worry about. So discuss your situation with an independent agent and they’ll help walk you through landlord insurance coverages to consider, like: 

  • Property damage: Protects your property (like the buildings, pools, sheds and even your equipment.)
  • Liability coverage: Protects you in case someone gets harmed on your property (like Mark in 4B, who says one of these days someone’s gonna get bit in the snake pit.)
  • Workers' compensation: Protects you and your employees in case someone’s injured on the job, or claims a medical illness occurred due to their work.
  • Loss of income: Protects your finances, reimbursing you if your rental property becomes uninhabitable for any amount of time.
  • Natural disasters: Protects you from the real crazy weather stuff like earthquakes or floods.
  • Legal fee coverage: Protects you if a tenant gets a little sue-happy with you, helping you pay for a lawyer (‘cuz we hear they ain't cheap.)

What Factors Influence the Cost of My Plan?

There are a number of  factors that affect the cost of your plan, but when an insurance company is preparing your policy, these are the things they’re thinking about:

  • The locations of all your rental properties (some parts of the country are more expensive to insure)
  • Dates of purchase and purchase prices for all properties
  • Upgrades/improvements to the properties—including those made by tenants (i.e., added rooms, built-in shelves, etc.)
  • Existing or recent rental property insurance policies and claim history records
  • Safety equipment installed on the property, including burglar alarms, motion sensors, fire sprinkler systems or your trained guard poodle
  • The square footage of each unit

How Much Does Landlord Insurance Cost?

There are a number of different factors that affect the cost of your plan, but when an insurance company is preparing your policy, these are the things they’re thinking about:

  • The locations of all your rental properties (some parts of the country are more expensive to insure)
  • Dates of purchase and purchase prices for all properties
  • Upgrades/improvements to the properties—including those made by tenants (i.e. added rooms, built-in shelves, etc.)
  • Existing or recent rental property insurance policies and claim history records
  • Safety devices installed on each property - including burglar alarms, motion sensors, fire sprinkler systems or your trained guard poodle
  • The square footage of each unit
landlord insurance list

Connect with an Independent Insurance Agent to Compare Rates

Comparing policy rates by yourself can be complicated. There's tons of info and confusing words to digest. But here's where an agent comes in to save the day for you. They know everything that's important to consider when comparing rates and will help walk you through it all.

An independent insurance agent can make your life a lot easier—at least through this process. Since they're not tied down to one insurance company, they're free to shop, compare and assemble all the pieces of the coverage puzzle for you.

The Lowdown on Online Quotes

We know what you want—quick n’ easy landlord insurance quotes in under a minute. We get it, you want the lowdown, ASAP. However, choosing head-spinning speed could mean sacrificing accuracy...which could end up costing you.

Online companies might leave out options that'll save you some serious green, while conveniently leaving in factors that assume higher risk and calculate a pricier policy.

Our competitors might also sell your precious info to multiple companies, which could lead to a bunch of unwanted voicemails from unknown numbers. We grabbed the mic and gave it to YOU by providing the info and options to connect with an independent insurance agent when the time is just right for you.

TrustedChoice.com Article | Reviewed by Paul Martin

Now, who's ready to get their insurance problems solved?