Landlord Insurance - What To Look For?

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biscuit
Posts: 94
Joined: Thu Dec 12, 2013 1:33 pm

Landlord Insurance - What To Look For?

Post by biscuit » Fri Dec 30, 2016 9:41 am

Accidental landlord here shopping for landlord insurance. Below are my questions:

1. What should I look for when shopping for landlord insurance? property damage, liability insurance are in my list of things to cover.
2. How much damage should the insurance cover? The current property value is $326K as per the recent assessment
3. Any recommendations on insurance providers?
4. Anything else I'm missing to cover here?

TIA!

cherijoh
Posts: 4957
Joined: Tue Feb 20, 2007 4:49 pm
Location: Charlotte NC

Re: Landlord Insurance - What To Look For?

Post by cherijoh » Fri Dec 30, 2016 9:51 am

biscuit wrote:Accidental landlord here shopping for landlord insurance. Below are my questions:

1. What should I look for when shopping for landlord insurance? property damage, liability insurance are in my list of things to cover.
2. How much damage should the insurance cover? The current property value is $326K as per the recent assessment
3. Any recommendations on insurance providers?
4. Anything else I'm missing to cover here?

TIA!
It's been a while since I was a landlord, but IIRC I basically had the same policy as Homeowners without most of the coverage for personal property. Have you checked with whoever covers your homeowners policy? There could be a multi-policy discount.

ResearchMed
Posts: 7409
Joined: Fri Dec 26, 2008 11:25 pm

Re: Landlord Insurance - What To Look For?

Post by ResearchMed » Fri Dec 30, 2016 9:57 am

biscuit wrote:Accidental landlord here shopping for landlord insurance. Below are my questions:

1. What should I look for when shopping for landlord insurance? property damage, liability insurance are in my list of things to cover.
2. How much damage should the insurance cover? The current property value is $326K as per the recent assessment
3. Any recommendations on insurance providers?
4. Anything else I'm missing to cover here?

TIA!
It will be a commercial policy.

And you should also get a commercial umbrella policy, for liability.
Your personal umbrella policy (you do have one, right? :wink: ) probably won't cover commercial/business endeavors.

RM
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boglerdude
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Re: Landlord Insurance - What To Look For?

Post by boglerdude » Sat Dec 31, 2016 1:08 am

Property damage: The insurer will tell you how much to rebuild. Start there and at some point get a sanity check from a contractor.
Liability: The minimum required by your umbrella insurer (usually 300k) plus 1MM umbrella.

Recommendations: Amica and USAA are top rated in customer service. Geico might be cheapest. Just today I finally found an independent agent who's knowledgeable, PM me if you want a referral.

Anything else: The importance of tenant screening cannot be overemphasized. And require proof of renter's insurance in addition to being a named insured on their policy.

edit1: Dont bother filing claims for less than ~4k because your rates can go up and you get can get blacklisted. But I havent done the breakeven math on this.

edit2: Nationwide gave me a low quote on landlord but they required primary home also be with them (many carriers do) but that ties your hands

Tal-
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Joined: Fri Apr 22, 2016 10:41 pm

Re: Landlord Insurance - What To Look For?

Post by Tal- » Sat Dec 31, 2016 1:51 am

1. What should I look for when shopping for landlord insurance? property damage, liability insurance are in my list of things to cover. The coverage is basically the same as for your primary - though you will want to expand your liability coverage.

2. How much damage should the insurance cover? The current property value is $326K as per the recent assessment. Get a ton of liability. I strongly suggest that you get a huge umbrella policy, and that should cover both your primary and rental. Bare minimum is $1M, but I'd suggest double that. Note that you will need to shift your homeowners policy to jive with the requirements of the umbrella policy.

3. Any recommendations on insurance providers? When you have a rental and a primary covered under a liability plan, it makes a lot of sense to have everything under one provider. We use State Farm - they have met our needs and have been easy to work with, but are not the lowest cost out there.

4. Anything else I'm missing to cover here? With only one rental, you probably do NOT need commercial coverage (that kicked in for us at 5 properties).

Lots of people will advocate using an LLC (I'm not typically one of them), but you do need to keep a lot of liquid cash.
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