How Much is Landlord Insurance

A typical home insurance policy can’t provide you enough protection especially if you’re planning to rent your property, that’s why there’s a separate insurance policy known as landlord insurance that serves for this purpose. Do you have any idea on how much is landlord insurance normally cost?

If you’re a landlord then you should know how landlord insurance is being quoted.

Knowing how much is Landlord Insurance Cost and its Importance

If you own a certain property such as condominium, apartment, or a simple house, acquiring an insurance policy is very important for gaining some protections for you properties. Normally, property owners have a usual misconception regarding typical home insurance policies and they initially thought that it is enough to cover even they have decided to rent the property to other tenants. Bear in mind that conventional home insurance policies are not intended to cover your rental business and only have a limited feature for its coverage. For that reason, acquiring landlord insurance is another option if you want the rental property to be fully-protected against unexpected circumstances.

Always remember that your properties are sort of investment and it is your job as the legal property owner to protect the structures from unusual risks once it is used for rental purposes. Financial losses is possible if there’s no appropriate landlord insurance policy acquired to the property since cases of damages caused by fire, flood or storm, earthquake, and other natural calamities are usually obvious to happen. The insurance policy itself can cover the cost for fixing the structures from damages and it is also a way of protecting the revenue from the rental fees you have earned from the rental properties. Once there is a problem in collecting the rent from the tenants and you sue them in court, certain features of landlord insurance policy can compensate you from the expenses you made and this is through “legal expenses” policy option.

Moreover, landlord insurance policies have additional features or coverage such as “loss of rental coverage”, contents insurance, building insurance, liability insurance, and renters insurance. These extra policy options will add on the premiums of your standard insurance policy, thus you must be careful in choosing the policy that generally fits for your insurance needs and desired liability coverage. There is no standard rate for the actual cost of landlord insurance policy and the price may vary depending on the aspects involved. For example, you own an apartment complex and you wish to insure the contents that cost for about $5,000.00 (excluding the tenant’s contents), therefore you will gain lower premiums than $10,000.00 worth of contents in the property.

How much is Landlord Insurance Based on Several Aspects?

The rates or quotes of a landlord insurance policy are normally based on the following aspects:

  • Property location
  • BSI or rebuild value
  • Type and age of the rental property
  • History of claims

The above mentioned aspects are used in calculating premiums of landlord insurance policies in UK and some other factors might be added like the types of the tenants depending on the insurer. Thus, before you purchase a policy you must understand first the terms and conditions as discussed to you by the insurance agent or insurance company.

1 Comment

  • Viola Freeman said on October 30, 2011
    Beaumont, Texas 3432 Pradice st. I'm considering renting my home. It is now covered through texas fair plan. My daughter lives there and if she moves out it will be empty and I would love to fill with a tenant on Housing Program. The house is valued at $48000. I have a $170,000 policy to rebuild which they required. I never rented it before. can I get a tenant quote to cover the home interior and appliances. I also would like to protect from fire and thief if I make in furnished.


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