Landlord Insurance Policy FAQs You Need to Know

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A landlord's policy safeguards your rental property from a variety of events up to a maximum amount.

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Why do I need property insurance?

If you have a mortgage or home equity line of credit, the bank requires you to protect the property and reduce the risk of a complete loss. Even if you don't have a loan, insurance helps protect the investment you've made into the building and premises.

What does landlord insurance cover?

Your landlord policy may cover specific events such as fire, arson, storm damage, flood, slip and fall, break-in, and more. It can protect the main dwelling, garage, shed, pool, hot tub, and other structures. 

TIP: Do not assume the policy adequately protects your property. The insurance may not cover certain situations (also known as restrictions) or may require you to pay an additional premium (e.g., hurricane, flood, earthquake, terrorism, sinkholes).

Where should I get a quote?

Call an insurance broker who works with dozens of carriers. You'll receive multiple offers based on one application rather than applying for quotes one by one. It's a more straightforward way to find an insurance company that fits your needs.

What information do I need for an insurance quote?

The insurance application gathers essential details about the rental property such as the year built, description of recent improvements, unaddressed maintenance issues, age of the roof and mechanics, the HVAC system, and much more.

How do I know what's included in my policy?

When you receive an insurance quote, turn to the declarations page in the insurance binder. It states the coverage, policy limits, and deductible. The limits will include a maximum dollar amount per occurrence and total payout for the policy.

How much does landlord insurance cost?

The premium depends on several factors, including the features you want in your coverage, age/condition of the property, and insurance score. 

TIP: An owner-occupied rental property has cheaper rates than a non-owner occupied one. 

When do I need to pay my insurance premiums?

Depending on the carrier, you pay the insurance premium monthly, quarterly, or annually. Many companies offer a small discount when you choose the annual premium and combine it with other coverage (e.g., auto, boat, RV, motorcycle).

For mortgaged properties, banks require you to place your insurance and property taxes in escrow to protect their interest. It means you pay the first year of insurance upfront with the bank and then pay monthly towards the second year.

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DISCLAIMER: Please consult with your accountant, attorney and financial advisor before implementing any information displayed on this website. DIY research does not replace the advice of a licensed professional who has thoroughly reviewed your file.