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Have you made the plunge into real estate investments and become a landlord? If you have, you aren't alone. Experts estimate that there are 10 -11 million individual investor landlords in the U.S. Real estate investments can be a great way to build wealth, but you need to do your research before taking the plunge.

You need to recognize the unique risks landlords face and protect your investment with the right Landlord Insurance. You don't want to pay for insurance you don't need, but then again, you don't want to leave gaps in your coverage. The first step is understanding the types of Landlord Insurance available to you. You probably don't need them all, but you should at least be aware of your options.

10 Types of Insurance Landlords Need to Consider 

1. Landlord Insurance – These policies typically cover a range of risks, such as property damage, loss of rental income, liability claims, and legal expenses.
   
   
2. Hazard and Fire – This insurance covers damages caused by fire, storms, explosions, and other hazards.
   
   
3. Commercial Liability – Liability insurance helps pay legal fees and awarded damages if a tenant or guest sues you.
   
   
4. Flood – Hazard and fire insurance should cover you in the event of a broken pipe; however, it may not cover damage caused by water coming in from the outside., such as the July 17th storm in Berks County. WFMZ reported, "Many watched helplessly as their basements filled up with water from Sunday's storm." Flood insurance can help you recover from such an event.
   
   
5. Sewer and Water Line Backup – A break in your sewer or water line can cause a great deal of damage. Sewer and Water Line Backup coverage can help pay for repairs and cleanup.
   
   
6. Rent Guarantee (Aka Tenant Rent Default) – If you rely on the cash flow provided by rent from your tenants, you may want to look into rent guarantee insurance, which covers you if a tenant skips out without paying rent.
   
   
7. Pet – For many, their pet is part of the family, and they couldn't imagine living without them. Therefore, allowing tenants to have pets can reduce vacancy and enable you to charge higher rents. But pets can cause damage or injuries, so if you decide to make your property pet-friendly, you may want to consider pet coverage.
   
   
8. Loss of Income – If there is a fire or flooding, or any damage that makes a property uninhabitable for an extended period, loss of income coverage provides compensation to help with cash flow.
   
   
9. Builder's Risk – If you are renovating a vacant property, you may want to consider builder's risk insurance to protect against vandalism, theft, and other damages.
   
   
10. Umbrella Liability Insurance - Umbrella liability insurance is designed to protect your business against catastrophic losses that exceed the limits of other policies or for losses not covered by other policies. Think of it as an upgrade to your existing insurance that goes above and beyond.

How to Choose the Right Landlord Insurance Policy

When choosing landlord insurance, consider the following:

• Coverage limits: Ensure the policy offers sufficient coverage for your property and needs.
• Deductible: The amount you'll need to pay out of pocket before the insurance coverage kicks in.
• Premiums: While it's important to find a policy that fits within your budget, it's also vital to ensure that you're getting sufficient coverage.

Save Now on Landlord Insurance

American Insuring Group offers a range of Landlord Insurance policies to fit your needs and budget. Our experienced independent agents can help you find the right policy to protect your investment at the best possible price, as we carefully compare competing offers from various insurance carriers.

Call today at (800) 947-1270 or (610) 775-3848, or connect with us online.

Landlord Insurance is not required by law but is essential if you want to protect yourself, your rental property, and your tenants. Furthermore, most lenders will require that you have it. Renting your property – house, condo, apartment building, etc. – to someone else presents unique risks that regular homeowners' insurance won't cover.

What is Landlord Insurance?

Landlord Insurance is a type of homeowner's insurance that covers damage to your rental property and helps protect you against any lawsuits related to the property. Your coverage may vary, but Landlord Insurance typically covers property damage caused by risks such as fire, lightning, windstorms, vandalism, etc. It also helps cover liability claims, legal expenses, and loss of rental income.

The Insurance Information Institute reports, "Landlord policies generally cost about 25 percent more than a standard homeowners policy to pay for increased protections." The good news is that Pennsylvania is one of the cheapest states when it comes to Landlord Insurance costs.

As a landlord, you may be looking for ways to lower the cost of landlord Insurance and improve your bottom line.

10 tips to help you lower Landlord Insurance Costs:

1. Properly maintain your property - Proper maintenance helps attract and retain better tenants, preserve and increase your property's value, prevent more costly repairs, and help lower Landlord Insurance costs. Experts suggest the following maintenance measures – air filter replacement, regular exterminations, smoke and carbon monoxide detector tests, water heater draining, bathroom re-caulking, gutter cleaning, and regular inspections.
   
2. Make safety a priority – A safer property translates to lower liability risks and fewer claims. "Every property manager should follow some basic safety tips and procedures to make tenants more safe," Experts recommend. "Whether it's physical property modifications, rules for behavior, or your selection of services and vendors, just a little goes a long way when it comes to enhancing property safety."
   
   
3. Install safety features – Installation of safety features, such as proper lighting, secure doors and windows, security cameras, carbon monoxide and smoke detectors, and alarms, can significantly improve the safety of your tenants and your property.
   
   
4. Make renters' insurance a requirement - Renters' insurance is not required by law, but landlords can make it a requirement as part of a tenant's lease. Requiring renters' insurance can help mitigate the risk of a lawsuit, reduce your responsibility, cover your deductible, provide peace of mind, lower insurance premiums, and more.
   
   
5. Watch Your Property Valuations – The value of your property and replacement costs can fluctuate, so if you want to ensure you have the right insurance coverage at the lowest cost, keep an eye on your property's value.
   
   
6. Increase your policy's deductible – Increasing the deductible (the amount you pay if a claim is filed) can help lower your annual premiums; however, you must ensure that you have enough available funds to cover your deductible in the event of a claim.
   
   
7. Pay your premium annually – Typically, paying your insurance premium in full for the year is lower than paying the premium monthly or in installments.
   
   
8. Bundle insurance policies – If you have more than one rental property or require additional insurance coverage, purchasing all of your policies with one insurance company may lower your premiums.
   
   
9. Don't pay for coverage you don't need – There are many optional riders landlords may want to consider to provide further protection. Still, It's important to consider whether you face the potential risk before adding a rider.
   
   
10. Work with American Insuring Group – We have agents who specialize in Landlord Insurance to ensure you have the right coverage. As independent agents, we check with many insurance companies to ensure you pay the lowest premium for that coverage.

Get a Free Landlord Insurance Quote Today!

At American Insuring Group, we offer comprehensive landlord insurance policies that cover a range of risks, from property damage to liability claims. Our affordable policies protect your investment and give you peace of mind. Our independent agents compare policies from competing insurance companies to make sure you get the right insurance at the best price.

✅ Call us today for a quote at (800) 947-1270 or (610) 775-3848, or connect with us online and start saving!

A rental property is a significant investment that you have no choice but to entrust to total strangers. Landlord Insurance can protect you, your property, and your tenants. However, as an investor, you are probably looking to make a profit on your rental property, so you want to ensure you have the right coverage at the lowest cost possible.

Understanding Landlord Insurance and working with the right insurance agent can help ensure that happens.

5 Landlord Insurance FAQs 

1. What is Landlord Insurance?

Landlord Insurance is a unique type of homeowners' insurance that protects your property – house, condo, guest house, apartment building, commercial building, etc. – if you rent it out to someone else. Rental properties present unique risks, and homeowners' insurance won't cover damage to a rental property or protect you against any lawsuits related to the property. Landlord Insurance does this and more. Typically, Landlord Insurance is not required by law, but most lenders will require it, and it makes good business sense.

2. What Does Landlord Insurance Typically Cover?

Landlord Insurance is customized to your needs so that coverage can vary. However, most landlord insurance will cover the following against fire, lightning, smoke, explosion, hail, aircraft, vehicle, windstorm, and vandalism:

• Damage to property
• Liability claims
• Legal expenses
• Loss of rental income

Typically, landlord insurance does not cover the following:

• Maintenance
• Equipment breakdowns
• Tenant's personal property

Optional Riders landlords may want to consider:

• Burglary – This covers items – such as refrigerators, ovens, washers, and dryers - owned by the landlord but used in a rental property.
  
  
• Vandalism – This rider is helpful for properties in high-crime areas. It covers damage – such as graffiti, cement in the plumbing, etc. – done by someone breaking into the property.
  
  
• Non-occupied Dwelling – If a property or unit is vacant for an extended period, your landlord insurance may not cover claims during that time. For example: if you are remodeling or making major repairs to an apartment, a non-occupied dwelling rider will extend your coverage.
  
  
• HVAC Loss Reimbursement – This rider covers mechanical breakdowns of your HVAC system.

3. Do I Need Landlord Insurance if My Tenants Have Renters Insurance?

Renters' insurance typically includes personal property coverage, renters' liability insurance, guest medical expenses, and additional living expenses against disasters, such as fire, theft, and vandalism. It does NOT cover the building.

Renters' insurance is also not required by law, and only 55% of U.S. renters purchase it to protect their property. However, landlords can make renters' insurance a requirement of a tenant's lease, and "75 percent of insured renters are required by their landlords to obtain renter's coverage."

While renters insurance will NOT cover your property, there are many benefits of requiring renters insurance:

• Mitigates the threat of a lawsuit
• Reduces your responsibility
• Helps you find responsible tenants
• Covers your deductible
• Provides peace of mind

4. Are Landlord Insurance Premiums Tax Deductible?

Yes. Because owning and renting property is a business, your Landlord Insurance is considered an expense, and the premiums you pay are tax deductible.

5. How Can I Lower Landlord Insurance Costs?

Here are eight tips to help you save on Landlord Insurance costs:

1. Properly maintain your property
2. Install safety features, such as security cameras, smoke detectors, and alarms
3. Make renters' insurance a requirement
4. Increase your policy's deductible
5. Pay your premium annually
6. Bundle insurance policies
7. Don't pay for coverage you don't need
8. Work with one of the independent Landlord Insurance specialists at American Insuring Group

Don't Overpay for Landlord Insurance!

Now that you understand Landlord Insurance better, be sure to contact one of the independent agents at American Insuring Group so you can start saving! We help you get the best price on the coverage you need.

Call (800) 947-1270 or (610) 775-3848, or connect with us online.