Landlord Insurance: Choosing Coverage
I have to switch from Home Owners Insurance to Landlord. My agent quote me the following, please let me know your thoughts.
P.S. Someone suggested liability is too low, but did not said what would be a good coverage.
I got the quote and here is what I got.
• Policy Type: DP3
• Dwelling: $100K
• Other Structures: $7,400
• Content: $5,000
• Loss of Use: $0
• Liability Coverage: $100K
• Medical Payments: $2,000
• 10% of the property value in lost rent based on “fair market value” for the neighborhood.
It came out for $525.50.
Is there any room for improvement or this is good enough?
Looking forward to hear your thoughts.
Can someone advise as to which insurance carrier they recommend? That is, Liberty Mutual, Allstate, Assurant, etc.? I called four places for quotes and many of them seemed to not understand the needs of a landlord. Thanks!
Tiffany, I'm in insurance here in Florida so I can't help you directly. The only advice I can give on getting a quote is that it is dependent on the actual agent involved. All of the carriers you named are good. If you have any specific needs or questions just let me know.
Hi! I am starting with my first small investment property which I am closing on soon. There is already a tenant in place, and the property is out of state. Would I need a homeowner's insurance and a landlord policy? Also, is there a company that sell umbrella insurance policies nationally and not be state where your primary home is?
Thank you for your help!
@Richard Bull You need a rental dwelling/landlord policy for the rental.
Yes, most commercial umbrella policies will go over locations in multiple states.
@brad i am looking for landlord insurance in florida . Can you help?
Thanks for sharing. You know stuff like this scares me. I'm about to close on my very first rental property (in Maryland). Yes this a great path to achieve financial freedom but boy oh boy.
The type of insurance that's being discussed here, is this coverage on top of the home insurance policy? Or does this insurance part of the mortgage and escrow and stuff. Thanks and sorry to ask a silly question.
@lackshay G.
You will want to have LandLord Insurance above and beyond what you carry for your personal home insurance.
You should get it setup before you go to escrow.
It is sometimes a little tricky because we get financing on the property as a "second home" or investment, and often the insurance agents will setup a homeowner's policy for you. We see this happening in Texas where we do landlord-specific insurance.
What you want to make sure of is that you get "landlord insurance" or "investor insurance". Just tell your agent that you are looking for this.
@James Call. I'm aware of Homeowners Insurance an Umbrella Policies for Investment Properties.
Would you define "Landlord Insurance". I've been around RE for some time and I'm not familiar with that term.
Thanks in advance.
the term Landlord insurance is a Non-owner occupied Dwelling. A Homeowners policy is an Owner occupied Dwelling.
Both policies have the same main coverages of Property and General Liability, with each having some extras specific to that risk...examples being Homeowners having coverage for Personal Property (your stuff) and a Landlord policy having coverage for Los of Rents.
@James Call you either have a Homeowners policy or a Landlord policy. Your explanation reads as if you should have both, which is not the case.
@Jim Cummings and @Jason Bott,
I was referring to the non-owner occupied dwelling.