Best Landlord Insurance for first rental property (no LLC)
I will be renting out my current primary residence starting in 2023 and wont be able to transfer the property into an LLC (they will most likely call the loan if i do) I am looking for alternative means of asset protection for the rental property including the best landlord insurance. Any suggestions for landlord insurance and strategies for additional asset protection? thank you!
Hi @Alyssa Magyar - get an umbrella insurance policy! Call an insurance broker and let them know what you're doing, they should be able to recommend something that will work out nicely for you!
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Alyssa,
There is no magic bullet for Landlord Insurance. Different companies have good products but the rating and underwriting will depend on your property. My advise is to seek out an independent Insurance Agent that represents many carriers in your state. Have them run a comparison of the companies but also have them check a Commercial policy vs. a Personal Lines policy.
To increase your Liability protection you can:
1. purchase the maximum on the policy ($500,000 or $1,000,000 are the likely Maximums)
2. purchase an umbrella policy. they are normally quoted in increments of $1,000,000. Get quotes for $1mm, $2mm, etcl
Another area you can look to is a strong lease and requiring the tenant to have Renters coverage.
Purchase limits via primary or excess coverage that make you comfortable. If renting out short-term, make sure your policy doesn't have an exclusion in this regard. Seek out coverage that includes: water backup/sump overflow protection, mold coverage, equipment breakdown protection, service line coverage (for underground wires, water and sewer)... Review the exclusions list with your agent. Lease should include the requirement for tenant to maintain renters insurance (including a reasonable liability limit). Consider adding terms such as "landlord shall not be responsible for loss to tenants personal property however caused."