Landlord Insurance or Dweller's insurance policy

[Morgan N.]

Hi everyone I tried searching for these topics on a specific note. Now I know that its very specific or every household. But can someone tell me what premiums or rates they are getting for their landlord insurance?

Here's my property that will soon be leased to a tenant very soon:

1830sqft, 3/2, built in 2005, in fort worth, in saginaw, (fort worth) texas. I just got off the phone with State Farms insurance and they quoted me about $1476/year which I think is pretty high isn't it?

Also this doesnt include liability insurance. Do you guys have liability insurance in your rental homes?

[Eric Belgau]

The basic policy for a rented property is a Dwelling Policy, which covers the property (on a Replacement Cost or Actual Cash Value basis, or on some hybrid of the two), appurtenant structures (up to 10% of the value of the property) and basic liability.  The default liability limit is usually somewhere around $300,000, but you can increase that.  The additional premium for doing so is usually negligible.

You should also add loss of rental income - again a pretty small premium increase for valuable coverage.

Insurance companies have been adding value to these policies by including various tools to help landlords manage their properties, as well as adding packages of endorsements.  Some companies have dedicated products for landlords (like AmFam's Rental Dwelling Property Policy), and some carriers write landlord policies as Businessowners Policies (commonly called BOPs).

The primary rating basis is the valuation of the property.  Other risk aspects, such as the proximity of a fire hydrant and the age of the building, also play a role.  Claims history can have a significant impact on rate.

It's very difficult to compare apples to apples because of the way that various carriers add value to their policies.  You need to dig into the policies to see if the added coverages and tools are valuable.  (For example, if you're using a PM you don't need tenant screening tools.)  And it's important to work with a broker who understands who you are, what you have, what you need, and what the market can provide.

Hope that helps.