The cost of rental property insurance can vary based on a number of different factors, including:
Landlord insurance premiums vary based on a number of factors, including the level of coverage you purchase and which insurer you purchase coverage from. A typical policy might be anywhere from $80 to $100 per month.
The insurance brokers at R.A. Hughes Agencies will look through a number of different insurance policies on your behalf. They’ll present you with the best options, so you can compare quotes between insurers and find the policy that best suits your needs.
Claims Example
A landlord rents a detached home, valued at $500,000, to 3 different tenants, each of whom pays the landlord $1000 a month in rent. A fire breaks out and burns the house to the ground. The process of rebuilding the house takes 6 months.
The landlord’s insurance policy responds that they have a guaranteed replacement cost policy, so the entire cost of rebuilding the home is covered. Their insurance also includes loss of rental income coverage; the rebuild takes 6 months. The policy covers the lost rental income of $3000 per month (3 x $1000) for 6 months, for a total of $18,000.
Additionally, the landlord’s personal property is covered in the claim. The landlord had $20,000 worth of furniture, tools, and equipment on site.
The landlord has a $1000 deductible on their policy; the total payout is $537,000.
This claim is a simplified example of what landlord insurance claims look like, but it serves to give you an example of why landlord insurance is so valuable.
