What is Landlord Insurance?
Landlord insurance, also called “rental property insurance,” provides coverage for dwellings that are inhabited by renters. It offers special protections for landlords including premises liability coverage (injuries to tenants occurring on the property) and loss of rental income (if a claim causes the home to be uninhabitable). It’s specifically called a “dwelling policy” by insurance carriers. The landlord policy is different from a homeowners policy and you will not need an additional homeowners policy if you purchase landlord insurance.
Who needs Landlord Insurance?
Property owners who rent out their property to short or long-term tenants need landlord insurance. These policies can be written for single family homes, condos, duplexes, apartments, and more. They are often purchased when an owner buys or refinances a rental property and needs coverage. It is not mandatory, but recommended based on the specific associated risks and property value. It is however required by lenders that a landlord policy be in effect during the life of a loan on an investment property.
Landlord insurance can be purchased for vacant homes as well as rental properties, something generally not covered by homeowners policies. Landlord insurance policies may cover intentional damage caused by tenants, though coverage depends on the specific policy/provider. Other specific “add-ons” can be built into policies as well, such as vandalism protection and water damage. Flooding, general wear and tear, and equipment malfunctions are not covered by landlord insurance, this is where renters insurance and security deposits come into play
What types of Landlord Policies are there?
There are 2 primary policy types, DP1 and DP3 (dwelling fire policies). DP1 generally offers minimum coverage amounts and does not include additional protections. DP3 is generally more comprehensive and offers additional coverage.
DP1 policies protect against nine perils and cover your property for its actual cash value. This means the claim payouts will deduct depreciation from the amount they pay out for situations like older roofs that deteriorate over time. The DP3 policy is an open perils policy that covers the property for its replacement cost. Claim payouts would receive the full amount it would take to replace or rebuild your property at today’s market rates. This is why a DP3 tends to be more expensive than a DP1 policy.
Steadily also offers Condo Policies which cover condos rented out. These policies are generally “studs-in” (meaning they cover cabinets, floors, etc.) and work in tandem with the condo association’s master policy which covers the exterior of the property.
Bonus – when properties are managed by a property management company, landlord insurance policies can include an “additionally insured” section on the policy, extending the protection to the management company. This is very helpful for larger portfolios
Who should you get Landlord Insurance through?
We’ve partnered up with Steadily to give our clients a best in class landlord insurance experience. Once you’ve entered your address and contact info, Steadily will provide a competitive online quote for your property in less than 10 minutes. By working with us as your property management company, you may receive a discount on your policy
What makes Steadily special?
Steadily is a specialist landlord insurance company, which means working with landlords and real estate investors is all they do. Their agents are experts on dwelling policies and can assist with any questions that come up, such as add-ons and special coverage needs. Steadily can work around your schedule and provide the entire buying process online, via SMS, or over the phone. They ensure you get the best price by getting quotes from multiple carriers and will offer policies on their own paper by Q3 of 2021.