How Much Is Landlord Insurance and What Factors Affect The Cost?

November 25, 2017

The cost of landlord insurance can change based on a number of factors. For example, a smaller rental unit can have rates as low as $500 per year ($40/month) while a larger unit with a swimming pool could cost thousands of dollars per year (hundreds of dollars per month).

rented house

Some factors that will affect the premium cost of you landlord insurance include:

  • Your property location and any known risks in the area
  • The size of the structure
  • The age and condition of the building
  • The number of rental units you are insuring
  • The value of the property
  • The type of coverage you are purchasing
  • The amount of coverage you are purchasing
  • Whether or not you have burglar alarms
  • Whether or not you have a swimming pool
  • Whether or not the electrical wiring is up to current code
  • Whether or not fire sprinklers are installed
  • Whether or not the property has gated access
  • Whether or not smoking is permitted by tenants

Also keep in mind that there are several other costs to consider when you rent out your home or purchase a property to lease for rental income. It is important to factor in these costs as well as insurance costs to determine your profitability. Additional costs can include:

    • Property taxes
    • Maintenance and repairs for appliances, fixtures, paint, carpeting/floors, etc.
    • Property management costs (if you hire a management company)
    • Legal fees for advice from a real estate attorney
    • Cleaning costs between tenants
    • Lock changes between tenants
    • Maintenance costs to upkeep rental property grounds

Comparing Landlord Insurance Rates

Many new landlords compare landlord insurance rates by looking at average rates. Unfortunately, this may not be very accurate as there are many variables that go into the costs and differ from person to person.

Because of this, the first step in comparing rates for landlord insurance is determining what you want covered and how much. For example, maybe you want $1,000,000 in landlord liability, $5,000 of medical payments coverage, and coverage for fire and smoke, lightning, wind, hail, ice damage, water damage, loss of rent, and replacement cost.

An independent insurance agent is the best way to find an affordable policy catered to your individual needs. Let us help! Call us today at 415-386-2283 to learn more about your coverage options and receive a free quote.