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Landlord Insurance is crucial when protecting your investment; however, effective landlord-tenant communication – which doesn’t cost a dime / just a little time and effort—is just as important. We understand that, as a landlord, you have a lot on your plate, from screening applicants to maintaining your property; however, taking the time to communicate with your tenants could save even more time and effort down the road.

Communication is crucial from the time a potential tenant fills out the application to when they move out. It can help avoid misunderstandings, prevent conflicts, lower tenant turnover, and protect your property, saving time and headaches. Good communication between you and your tenant(s) can also save you money, resulting in higher profits.  

The Cost of Tenant Turnover

Tenant turnover is a costly part of property rentals that landlords and property managers can’t ignore. Tenant turnover creates vacancies, eats up more of your time, and lowers your profit. According to Apartments.com, the average turnover cost ranges from $1,000 to $5,000.

This cost can come from the following and more:

• Cleaning the unit
• Getting rid of anything left behind
• Changing locks
• Possibly re-painting
• Repairing any damage
• Advertising
• The lost income from a vacant unit
• Screening applicants
• Higher insurance costs if it remains vacant

“Reducing turnover isn’t just about preparing a vacant unit for a new tenant; it’s also about retaining good tenants. Landlords can save time, money, and effort by implementing tenant retention strategies. This includes responsive maintenance, periodic property inspections, and creating a positive living environment that encourages tenants to renew their leases,” Swiftland states. “By focusing on tenant satisfaction and fostering positive landlord-tenant relationships, landlords can significantly decrease the turnover rate, ensuring a more stable and profitable rental property.”

A vital component of “fostering positive landlord-tenant relationships” is effective communication.

Tips for Effective Landlord/Tenant Communication

1. Properly Screen Tenants
   Good communication should begin before you allow a tenant to move into your property by adequately screening them: run credit, background, and employment checks and conduct an in-person interview.
   
   
2. Set Clear Expectations
   Begin setting clear expectations during your first contact with them. Before they sign the rental agreement, verbally go over key points, such as rent payments, policies or rules, and maintenance responsibilities. It also doesn’t hurt to remind them of policies occasionally.
   
   
3. Be Responsive
   Address maintenance issues as quickly as possible. If a tenant contacts you with a question you can’t answer immediately, let them know that you understand their question and that you are working on getting the answer.
   
   
4. Foster Trust
   Trust is earned, and you can earn your tenants’ trust by responding quickly, keeping them updated and in the loop, and always being honest with them.
   
   
5. Provide Multiple Communication Channel Options
   Just like your friends and family, you will discover that everyone has different communication channels they prefer – text, email, voicemail, etc. You can ask them what their preferred channel is when they first move in. In addition, certain communications should be delivered through certain channels. For example, longer messages can be sent by email, quick communication can be made through text, and important communication is usually best done through a phone call or letter.
   
   
6. Use Written Communication
   Having written documentation, such as an email or text, can help both parties understand what is being said and provide evidence if a dispute occurs.
   
   
7. Be Friendly and Professional
   You want to act like an efficient waitperson or sales clerk and find the perfect balance between being professional (responding to their needs, getting back to them promptly, etc.) and friendly (asking them how they are, talking about the weather, smiling, etc.).
   
   
8. Keep Messages Simple
   If you’re sending an email or text or leaving a voicemail, you may be tempted to give every detail, but short and simple is usually the most effective way to communicate. Let them know what the issue is or what is going on without giving details that aren’t relevant. Don’t use big words.
   
   
9. Solicit Feedback
   Retailers understand the value of feedback. Landlords can use the same tactic by sending out short surveys, conducting quick interviews, or simply asking for verbal feedback.
   
   
10. Conduct Exit Interviews
    Conduct an exit interview when tenants leave and ask why they are moving out. The answer may be something you can’t control, such as they’re moving into a bigger place, buying a home, etc., or it could be something you can control with future tenants, such as maintenance issues, lack of communication, etc. 

Protect Your Investment With the Right Landlord Insurance

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.

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

Most property owners understand the importance of protecting their property with adequate insurance. If you're looking for insurance to protect the home you and your family live in, homeowners insurance is probably the answer.

However, if you rent out a room in your house, have a vacation home you rent out when you aren't using it, or rent your home out occasionally (for special events), homeowners insurance may not be adequate. And if you own a rental property with tenants, homeowner insurance is definitely not enough.

Historical data shows that tenant-occupied properties pose more risk than owner-occupied properties. Therefore, if you have homeowners insurance on a property occupied by tenants and need to make a claim, it probably won't be covered, making all those insurance premiums a waste of money. It isn't enough just to have insurance; you need to have the right insurance.

One of the experienced insurance agents at American Insuring Group can help ensure that you have the right insurance to protect your property, but here is some basic information to consider.

The Difference Between Landlord and Homeowners Insurance

• Occupancy
  Who lives on the property? This is the most significant difference between landlord and homeowners insurance. As we mentioned, homeowners insurance is probably your best bet if you and your family live in the home. However, if you rent an investment property out to tenants, you should have landlord insurance. Renting out a room or occasionally renting out the property is more of a gray area. Sometimes homeowners insurance will suffice, sometimes your homeowner's coverage may need to be adjusted, and sometimes the only thing to protect your property is landlord insurance.
  
  
• Property Coverage
  Typically, both homeowners and landlord insurance cover damages to the structure caused by covered perils, but coverage for personal property is different. Homeowner insurance typically covers all personal property (furniture, jewelry, household goods, etc.), whereas landlord insurance does not cover the tenant's personal property. Furthermore, if the property owner has furniture, appliances, landscaping equipment, etc., in the rental property, they need to consider that when choosing their landlord insurance policy.
  
  
• Pricing
  Because tenants pose more risk, landlord insurance typically costs about 25% more than the standard homeowner's insurance.
  
  
• Loss of Use vs. Loss of Rent
  Both homeowners and landlord insurance provide coverage when a property is damaged by a covered peril, rendered uninhabitable, and under repair. However, homeowners insurance provides coverage for loss of use (reimbursement for living expenses, such as accommodation and meals), and depending on your policy, landlord insurance covers loss of rent (rental income reimbursements to help cover ongoing expenses)

Types of Landlord Insurance

There are three types of Landlord Insurance: DP-1, DP-2, and DP-3. DP-1 offers the most essential coverage, DP-3 provides the most comprehensive coverage, and DP-2 falls in between.

• DP-1 offers the most affordable and least comprehensive coverage. It only covers perils named explicitly on the policy - fire, lightning, smoke, explosions, vehicles, aircraft, riots or civil commotion, volcanic explosions, windstorms, and hailstorms. DP-1 pays out the actual cash value (ACV) of the lost property. In other words, it determines your payout based on the original cost minus depreciation. That means you may not receive enough money to repair or replace an item at the current cost.
  
  
• DP-2 covers only perils specifically named on the policy, but it does include more perils, such as burglary, collapse, the weight of snow and ice, etc., than DP-1 policies. Unlike DP-1, DP-2 policies pay claims based on replacement cost value (RCV), which pays for repairs or replacements based on current costs.
  
  
• DP-3 is the most expensive option but offers the most protection. It covers all perils unless the peril is explicitly excluded in the policy. DP-3 typically pays out claims based on the RCV. It also covers loss of use, liability, and personal property you have on the property.

Do You Have the Right Insurance for Your Property? We Can  Help!

The independent insurance agents at American Insuring Group can ensure that you have the right insurance for your specific needs. Then, they carefully compare rates and coverage from competing insurance companies to find you the best price!

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

Historically, buying real estate has been a lucrative investment. "For the past decade, real estate has ranked as Americans' top investment pick, with 34% of Americans identifying real estate as the best long-term investment in 2023," according to Investopedia. "That puts real estate ahead of gold (26%), stocks and mutual funds (18%), savings accounts and certificates of deposit (13%), and bonds (7%) as the favored long-term investment."

As with just about any investment, buying real estate comes with its share of risks that need to be considered and addressed to succeed. Landlord Insurance can help protect you from some, but not all, of those risks.

Whether you want to purchase a property, fix it up, and sell it for a profit or rent it out and receive a monthly income from tenants, here are five tips to be successful in real estate investing.

1. Determine Your Goal
   Due to the high value and low liquidity of real estate investments, you must determine your goals before diving in or risk losing a lot of money. Do you want to buy a home to live in and build equity in rather than continue to pay rent? Do you want to buy a property and have a regular income through rental payments? Do you want to buy a property, hang onto it, and hopefully sell it for a profit, or do you want to buy a property, fix it up, and again, hopefully, sell it for a profit? You need to be clear on your goals before purchasing a property.
   
   
2. Do Your Research.
   Again, unlike buying stocks and bonds, if something goes wrong, you can't quickly bail out of a real estate investment, so before jumping in, do your research. Determine if you are in a buyers' or seller's market to help you decide if now is the right time to invest in real estate. Find out how much of a loan you will qualify for and the amount of the mortgage payments. Research if the property you're considering buying is in a good location (still one of the most crucial factors in real estate investment profitability) and if the property is in good condition or will require costly repairs. If you're planning on renting the property out, ask if the property currently has a tenant, how much they're paying, the rate of vacancy, etc. You must also know the rules and regulations, such as zoning laws, required permits, etc. Before diving into real estate investment, do as much research as possible to help avoid costly mistakes.
   
   
3. Understand Your Expenses
   Understanding your expenses is especially crucial when purchasing a rental property. You need to know approximately how much utilities, property taxes, and landlord insurance will cost. You need to allow for maintenance, repairs, improvements, and property marketing costs. Even if you're buying a property to immediately turn around for a profit, you need to figure in appraisal fees, home inspection costs, and closing costs. If you plan on doing work on the property before selling it, you need to determine the approximate cost of the work and business permits.
   
   
4. Have a Cash Reserve
   Things happen - the building needs a new roof, a tenant doesn't pay, etc. Setting aside a reserve of money to help cover these unexpected expenses can mean the difference between success and failure.
   
   
5. Manage Risk
   Managing risk can take many forms. Determining your goals and researching helps minimize the risk of getting in over your head or buying the wrong property. Understanding your expenses and having a cash reserve helps reduce the risk of being forced to sell the property at a loss. Ensuring the safety of your property and tenants - screening your tenants and installing smoke detectors, fire extinguishers, security cameras, etc. - can also help you manage risks.
   
   
6. Get Landlord Insurance
   Another way to manage risk and protect your investment is with the right Landlord Insurance. It's best to consult an experienced insurance agent to ensure you have the right insurance to protect your property. For example, did you know that if a rental unit is vacant for an extended time, you may be required to purchase Builder's Risk Insurance because the risks associated with a vacant property are different from those of an inhabited property; therefore, your regular landlord insurance policy may not cover the damage.

Do You Have the Right Insurance for Your Investment Property?

Landlord insurance is essential for protecting your investment property, but you don't want to overpay for coverage. The independent insurance agents at American Insuring Group carefully compare rates and coverage from competing insurance companies to find you the right policy at the right price!

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

Many new real estate investors assume homeowners' insurance will cover any damage or liability associated with their rental property. However, if you are not the resident of a property and instead rent it out to someone else – whether it's for a week or several years – you need Landlord Insurance, not Homeowner's Insurance, to protect yourself and your assets.

Why? Insurance is all about risk, and renting out your property to someone else increases risk. Therefore, if something happens to a rental property or someone is injured on the property, homeowner's insurance will not cover you. Furthermore, if you have a mortgage on the property, your lender will most likely require Landlord Insurance if you are not a property resident.

What is Landlord Insurance?

Landlord Insurance is a unique type of homeowners' insurance that protects your rental property, whether it's a house, condo, guest house, apartment building, commercial building, etc. It covers many of the risks that homeowner's insurance covers and more.

A good Landlord Insurance policy typically protects against three main risks:

• Property Damage helps replace or repair damages to your property caused by fire, theft, vandalism, natural disaster, etc.
• Lost Rental Income helps pay for lost rental income if the property is not inhabitable due to damage, severe mold, rat infestation, etc.
• Liability Protection helps pay for medical and legal costs if someone is injured on your property.

You may hear the terms DP-1, DP-2, or DP-3. DP stands for dwelling property. DP-1 provides the most basic level of coverage, and DP-3 provides the most comprehensive coverage.

The cost of Landlord Insurance can vary, based on the following factors:

• Location
• Age and condition of the property
• Security and safety equipment
• High-risk features, such as pools and fireplaces
• Short-term vs long-term tenants

Typically, Landlord Insurance costs about 25% more than a standard homeowner's insurance policy. Although it is not required by law, most lenders will require Landlord Insurance, and it makes good business sense.

Additional Riders to Consider

To choose the right coverage for your property, you need to consider the potential risks, how much cash reserve you have, etc. For example, if the property is near a river, you may want to consider flood insurance, or if you have little or no cash reserve and rely on the rental income to pay the mortgage, you may want to consider guaranteed income insurance.

Here are a few of the riders you may want to consider adding to your insurance policy:

• Rent Guarantee (Aka Tenant Rent Default)- Covers you if a tenant skips out without paying rent.
• 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.
• Pet –Allowing tenants to have pets can reduce vacancy and enable you to charge higher rents. However, pets can cause damage or injuries, so if you decide to make your property pet-friendly, you may want to consider pet coverage.
• Flood– FEMA states, "In simple terms, a flood is an excess of water on land that is normally dry."
• Non-occupied Dwelling – If a unit or property is vacant and damage occurs, landlord insurance may not cover it; however, non-occupied dwelling insurance typically does.
• Burglary – Although the renter is responsible for his personal property, landlords often have property in rental units, such as washers and dryers, refrigerators, etc., that can be stolen.

10 Questions to Ask Your Insurance Broker About Landlord Insurance

The experienced agents at American Insuring Group are always happy to address any questions you may have. Here are some questions to ask:

1. What are the deductibles on my policy?
2. Does the policy provide replacement cost or cash value?
3. Does the policy cover flooding, and what kind of flooding – natural disaster, sewer backup, etc.?
4. Can I do anything to lower my insurance costs for my rental property – upgrades, repairs, etc.?
5. Do you recommend any additional coverage?
6. Do I qualify for any discounts?
7. Does the policy cover both short and long-term rentals?
8. Do I need a separate umbrella policy?
9. What is NOT included in my policy?
10. Will bundling multiple policies help lower the cost?

#1 Tip to Lower Landlord Insurance Costs Without Affecting Coverage!

Contact one of the independent agents at American Insuring Company who specializes in Landlord Insurance. They understand your needs, can make recommendations, answer any questions, and ensure you have the right insurance (no gaps, but also not paying for coverage you don't need). Plus, as independent agents, they will compare the cost of your coverage among many insurance companies to ensure you receive the lowest insurance premiums for the protection you need.

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

Investing in rental property and becoming a landlord is a viable income stream for many Americans. According to Doorloop, approximately 17.1 million properties generate income in the U.S., earning as much as $97,000 annually (more than $35,000 above the median household income).

However, landlords need to make intelligent decisions, avoid mistakes, and protect their investments with Landlord Insurance to make that kind of income. Simply buying a property, making a few renovations, and renting it out – without taking necessary precautions – can lead to financial loss and more problems.

5 Common Mistakes Landlords Make

1. Not Properly Screening Tenants

When you rent out your property, you are handing it over to a stranger; therefore, it's imperative that you properly screen all tenants before handing over the keys. Although you may be concerned about quickly renting out your property and avoiding vacancies, you need to do whatever you can to help ensure that your tenants will pay their rent on time and not trash your property.

Stessa recommends the following steps when screening applicants:

• Set minimum applicant requirements
• Request a completed rental application
• Run credit, rental history, and background check
• Speak with current employer and landlord
• Interview the applicant
• Review all applicants
  
  

Most rental property owners compare their monthly costs with anticipated rental income to determine their profit. Many rely on rental income to pay all or part of their monthly mortgage payments. However, some fail to budget for months when the unit is vacant and providing zero income.

How often your rental property will be vacant and for how long varies greatly depending on the area, the economy, the condition of your property, etc., but it's safe to say that your property will be vacant at some point.

Therefore, when estimating your cash flow, always estimate for months with zero-dollar income from your rental property and ensure that you can continue to pay your mortgage, property taxes, maintenance costs, etc., when (not if) that happens.

3. Neglecting Property and Tenants

Although rental income is considered passive income, that doesn't mean that you can be passive when it comes to your property and tenants. You must ensure that your property is appropriately maintained to comply with the Pennsylvania Landlord Tenant Act, avoid injuries that can lead to lawsuits, and keep minor issues (a leaky faucet) from becoming more expensive repairs (replacing flooring). Landlords should regularly inspect their rental properties to watch for maintenance issues and perform routine maintenance (such as replacing air filters, testing smoke and carbon monoxide detectors, checking fire extinguishers, etc.).

You should also regularly check in with your tenants to ensure there aren't any issues that need to be addressed.

4. Not Treating it Like a Business

Too many landlords treat their rental property like a hobby. To be successful (enjoying an income and avoiding unnecessary headaches), you must treat your rental property like a business. That means conducting market research before purchasing a property, keeping records (financial, maintenance, etc.), estimating costs, building a financial reserve, having a marketing strategy, enforcing the lease, knowing when and how to evict a tenant, etc.

5. Not Getting the Right Landlord Insurance

One of the biggest mistakes many new landlords make – especially if they're renting out a single-family home – is to assume their homeowner's insurance policy will protect them if the rental property incurs damage or someone is injured on the property. Insurance is all about risk, and renting your home to someone else increases risk; therefore, most standard homeowner's insurance policies do not cover damage or injuries if you rent your property to someone else.

The right Landlord Insurance fits your specific needs and helps protect your property and so much more.

Don't Pay Too Much for Landlord Insurance!

As Landlord Insurance specialists, the agents at American Insuring Group understand your unique concerns and insurance needs to ensure you get the right insurance coverage. As independent agents, we compare your insurance coverage with multiple competing insurance providers to ensure you get the best price on quality coverage. 

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

Being a landlord can be financially rewarding; however, to be successful, landlords need to understand potential liability issues, take actions to prevent them, and ensure they have the right Landlord Insurance. Liability issues can come in many forms.

7 Common Landlord Liability Issues

1. Criminal Activity
   If a landlord's negligence, such as failing to provide proper locks on doors and windows, allows criminal activity to occur, they may be held liable. If the landlord is aware of recent illegal activity on or near the property and doesn't warn their tenants, they could be held responsible for any subsequent criminal activity.
   
   
2. Injuries
   If a landlord fails to maintain common areas properly and someone incurs an injury, the landlord may be held liable. For example, a landlord fails to remove snow and ice from the property's walkway, and someone slips, falls, and breaks their leg.
   
   
3. Negligence
   In Pennsylvania, landlords can be liable for negligent maintenance, such as mold exposure, vermin, or carbon monoxide poisoning.
   
4. Dogs and Other Pets
   Allowing pets can increase income and create a bigger potential tenant pool but also raises a landlord's liability. For example, if the landlord knows that a tenant's dog is dangerous, they can be held liable for injuries caused by that dog.
   
   
5. Invasion of Privacy
   A landlord's need to enter a unit and a tenant's need for privacy are sometimes in conflict, creating invasion of privacy issues. If a tenant feels a landlord invaded their privacy, they may sue them.
   
   
6. Libel or Slander,
   "Libel involves the act of publishing a statement about an individual, either in written form or by broadcast over media platforms such as radio, television, or the Internet, that is untrue and threatens to harm the reputation and/or livelihood of the targeted person," Investopedia. In contrast, slander refers to "unwritten or unpublished defamatory speech." If a tenant feels their landlord committed libel or slander against them, they may try to hold them accountable.
   
   
7. Housing Discrimination
   The Fair Housing Act is "the federal law that makes it illegal to discriminate in any housing-related transaction based on seven protected classes," which include race, color, national origin, religion, sex, disability, and familial status. If a landlord violates that law, they could be taken to court.
   
   

7 Tips to Mitigate Landlord Liability Issues

1. Be Aware
   Be aware of what is happening within your property and the neighborhood so you can take appropriate action if needed.
   
   
2. Take Safety Precautions
   Safety precautions may include a security system, better locks, or outdoor lighting.
   
   
3. Create a Comprehensive Lease
   Every potential liability issue should be addressed in the lease, who is and isn't responsible for different scenarios should be spelled out, and the lease should be reviewed and signed by the landlord and tenant.
   
   
4. Screen Potential Tenants
   "When you screen a prospective tenant, you are doing your due diligence to ensure that you are not putting yourself at risk for liability. By screening tenants, you can reduce the chances of being sued by someone who was injured on your property or had their personal information stolen," experts "This also helps to protect your current tenants from harm."
   
   
5. Regularly Inspect the Property
   As you walk around your property, look for any issues, such as burnt-out light bulbs, broken locks, and crumbling walkways, and make repairs before they become a liability issue.
   
   
6. Properly Maintain Property
   Investing in regular property maintenance provides many benefits, such as getting higher rent, preventing more costly repairs, and minimizing the risk of litigation.
   
   
7. Get the Right 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. Requiring your tenants to have renters' insurance can lower your liability risk.

Protect Yourself Against Liability and Other Risks With the Right Landlord Insurance

American Insuring Group offers comprehensive landlord insurance to cover a range of risks, from property damage to liability claims. Our affordable policies protect your investment and give you peace of mind. We get you the best price on landlord insurance by comparing competing insurance companies for you!

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

Rental properties are an investment, and the right Landlord Insurance can help protect that investment. Normal wear and tear on a property is… well… normal; however, discovering a tenant has trashed your property is frustrating as you consider all the wasted time, money, physical and emotional energy, and other resources to replace and repair damaged items.

Today, returning a damaged property to a rentable space takes more time and effort than ever. Supplies cost more and are harder to come by. Finding a good contractor to do the repairs can be more challenging. Therefore, the best approach – as is so often the case – is to be proactive by minimizing the risk of a tenant trashing your rental property.

8 Tips to Keep Renters From Trashing Your Property          

1. Screen Potential Tenants
   All potential tenants should be thoroughly screened. Screening includes running credit, rental history, background checks, talking to current employer, landlord, and references, interviewing the applicant, etc. Always remember to treat potential tenants equally and fairly and to follow all local, state, and federal fair housing laws. Typically, tenants who are responsible with their finances, employment, previous rentals, etc., will be more responsible with your property.
   
   
2. Collect a Security Deposit
   "A security deposit is money that belongs to the tenant but [is] held by the landlord for protection against damages," the Housing Equality Center of PA "The tenant is responsible for the rental payments for the entire length of the lease. When the lease has expired, the tenant should have the security deposit returned to them minus any damages to the property." Currently, Pennsylvania law allows a maximum of two month's rent for a security deposit for the first year. Knowing they could lose that money incentivizes many renters to take care of your property.
   
   
3. Take Photos Before Tenants Move in
   Document the condition of your property before a tenant moves in with photos and a written document that the tenant signs to show they agree on the move-in condition of the property.
   
   
4. Draft a Thorough Lease Agreement
   To help avoid future issues, draft a thorough lease (or rental) agreement and review it with your new tenant before you both sign it. A lease agreement is a binding contract that lays out the rights and responsibilities of you and the tenant. It should include security deposits and fees, repair and maintenance policies, your right to enter the rental property, rules and policies, etc.
   
   
5. Schedule Inspections
   Include a provision for regular inspections in the lease agreement so you can regularly check the property to ensure that tenants are taking care of it and keep a minor issue (like a small leak under the sink) from becoming a bigger, more expensive repair.
   
   
6. Keep the Rental Property Maintained
   As we said, minor issues can become bigger, more expensive repairs. Therefore, regular inspections and maintenance can go a long way to minimizing property damage. Plus, if the renter sees that you are doing your best to maintain and provide the best living conditions, they may be more likely to do the same.
   
   
7. Take Immediate Action if a Tenant Stops Paying Rent
   Failure to pay rent is an obvious red flag that the tenant may not be as responsible as you had hoped and may be causing damage to your property. Don't hope the issue goes away. Instead, take immediate action.
   
   
8. Get the Right Landlord Insurance
   Sometimes, despite your best efforts, a tenant will damage your property. It's best to consult an experienced insurance agent to ensure you have the right landlord insurance to protect your property. Due to the increased risk inherent in a rental property, a homeowner's insurance policy will not cover damage to a rental property.

Don't Overpay For Landlord Insurance!

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.

You can rely on our independent agents p to provide the protection you need at the best price because we compare pricing and coverage from competing insurance companies to find the right protection at the right price.

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

How to Choose the Right Landlord Insurance

If you rent out a property – whether a single-family house or a 50-unit apartment complex – the right Landlord Insurance can help protect your property and so much more.

Homeowner's Insurance vs. Landlord Insurance

"A standard homeowners insurance policy insures your home's structure (house) and your belongings in the event of a destructive event, such as a fire," the Insurance Information Institute (III) explains. "In addition, homeowners insurance policies are generally 'package policies.' This means that the coverage includes not only damage to your property but also your liability—that is, legal responsibility—for any injuries and property damage to others caused by you or members of your family (including your household pets)."

One of the biggest mistakes many new landlords make – especially if they're renting out a single-family home – is to assume their homeowner's insurance policy will protect them if the rental property incurs damage or someone is injured on the property. Insurance is all about risk, and renting your home to someone else increases risk; therefore, most standard homeowner's insurance policies do not cover damage or injuries if you rent your property to someone else.

That is where landlord insurance comes in. 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 sometimes loss of rental income.

Because insuring a rental property involves more risk, landlord insurance is typically about 25% more expensive than standard homeowners insurance; however, it is essential to protect your property from damage and yourself from lawsuits. 

5 Steps to Choosing the Right Landlord Insurance

1. Determine Your Property Type - There are many types of properties you can rent out, such as non-owner-occupied residential homes, condos, multi-unit properties, apartment buildings, multi-use properties, and commercial properties.
   
   
2. Understand the Types of Landlord Insurance – There are three basic types of landlord insurance:
   • Dwelling Fire Insurance Policy – Each policy is unique, but this type of insurance typically covers damage caused by fire, vandalism, wind, hail, etc.
   • Business Owner Policy (BOP) – BOPs typically cover property damage and general liability.
   • Commercial Packages Policy (CPP) – This type of insurance is typically best for larger complexes with 150 units or more.
     
     
3. Choose Additional Coverages
   Beyond the basic property damage and liability protection most standard Landlord Insurance policies provide, you may want to consider one or more of these additional coverages:
   • Flood
   • Sewer and water line backup
   • Rent guarantee (Aka tenant rent default)
   • Pet
   • Loss of income
   • Builders risk
   • Umbrella liability insurance
     
     
4. Choose Your Settlement Option
   • Replacement Cost Value (RCV) – If you choose RCV and make a claim, you will be reimbursed based on how much it will cost to replace, repair, or rebuild at today's costs.
   • Actual Cash Value (ACV) – If you choose ACV and file a claim, you will be reimbursed at the current value, factoring in depreciation and normal wear and tear.
   • Modified Replacement Cost Value – "If you own an older home or one that is historically or architecturally significant, you may have to purchase dwelling insurance that comes with modified replacement value coverage," US News explains. "Let's say you own a home built in 1892, and it includes the original ornate crown molding, lath and plaster walls, and custom stained glass. Whether your home is damaged or completely destroyed, modified replacement cost value coverage focuses on functional replacement rather than accurate restoration. You will only receive as much money as it takes to rebuild or repair with current-day materials, including standard molding, drywall, and modern fixtures."
     
     
5. Set Your Policy Limits – Most insurance policies have a limit – the most they will pay if you make a claim. Anything above that limit will be paid out of your own pocket. You may want to lower your limits to save on premiums, but you must ensure you can cover the difference. Or, you may want to increase your limits to ensure you are covered for just about any event.

Work With an Experienced Independent Insurance Agent

Landlord Insurance can be complicated, but the experienced agents at American Insuring Group can help you find the right insurance for your specific needs. Plus, as independent agents, we will compare the cost of your coverage with multiple insurance companies to ensure you get the best price and the right coverage!

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

Your rental property is a significant investment, and the right Landlord Insurance can help protect that investment. There are steps you can take to help keep your rental property safe, thereby keeping your insurance and other costs down, attracting better tenants, and avoiding unnecessary headaches and hassles.

8 Tips to Keep Your Rental Property Safe

1. Install Fire Extinguishers

According to the National Fire Protection Association (NFPA), A fire department responds to a fire every 23 seconds in the U.S. at a cost of about $328.5 billion annually. Fire extinguishers can put out about 80% of all fires, yet less than half of Americans own a fire extinguisher. Install portable fire extinguishers in public spaces and each unit within your rental property and ensure they are easily accessible. Also, remember to regularly inspect the fire extinguishers to ensure they are in good working order.

2. Install Smoke Detectors

In Pennsylvania, landlords are required to provide smoke unless there's a fully automated sprinkler system. Smoke alarms save lives and money. According to the U.S. Fire Administration, "38% of residences had an operable alarm during a fire, but these fires accounted for only 8% of total property loss." Install smoke detectors, but also remember to inspect them regularly, and although legally it is the tenants' responsibility, consider replacing the batteries regularly.

3. Install Flood or Moisture Detectors

Flood or moisture detectors can alert you to small leaks before they cause damage and become more expensive repairs. And they can quickly alert you if you have a bigger problem like a burst pipe.

4. Install Adequate Lighting

Installing adequate lighting along walkways, entries, and public areas like hallways and lobbies can help prevent vandalism and theft. Good lighting can also minimize the risk of falls, reducing the risk of a lawsuit.

5. Secure Doors and Windows

Keep your tenants safe and reduce the risk of vandalism and theft by ensuring that all doors and windows are secure. Every window and door should have a lock. All individual units should have a deadbolt. Entry and exit doors should be made of steel or solid wood core. If your property is in a high-crime area, you may want to consider installing security bars on the windows.

6. Install Security Cameras

Security cameras have become more affordable than ever, and installing security cameras outside or in public areas can help protect your property. However, it's important to understand the laws in your area regarding the use of security cameras.

7. Screen Your Tenants

Screening helps ensure that you get tenants who are less likely to engage in vandalism or criminal activity or damage your property. Experts suggest having tenant screening criteria, such as no smoking, adequate income, no history of violent crimes, etc.

8. Get the Right Landlord Insurance

Sometimes, despite your best efforts, an injury or property damage occurs. It's best to consult an experienced insurance agent to ensure you have the right landlord insurance to protect your property. For example, did you know that if a rental unit is vacant for an extended time, you may be required to purchase Builder's Risk Insurance because the risks associated with a vacant property are different from those of an inhabited property; therefore, your regular landlord insurance policy may not cover the damage. 

Do You Have the Right Insurance for Your Rental Properties?

Landlord insurance is essential for protecting your rental property; however, you don't want to overpay for insurance coverage. The independent insurance agents at American Insuring Group compare rates and coverage from competing insurance companies to find you the right policy at the right price!

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

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.