Do I Need to Get Theft/Vandalism Insurance for My Rental

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Do I Need to Get Theft/Vandalism Insurance for My Rental

Caleb Rehg
New to Real Estate · Member since 2023 · 20 posts · 9 votes

I am in the insurance process and was wondering if I should get theft/vandalism insurance for my long-term rental.

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Kelly O'Keefe
Accountant · NC · Member since 2023 · 123 posts · 163 votes
2y

In my experience that insurance is well worth the minimal cost. One incident of theft or vandalism could cost you thousands. Having insurance could also protect you from tenants who choose to cause damage while they are leaving, or even come back after they are out of the property to cause trouble 

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  • Owen RosenBusiness Member
    Professional · Clinton Township, MI · Member since 2015 · 705 posts · 266 votes
    2y

    Unless the cost is significantly more expensive and gives you pause I would recommend taking the coverage.  Of course each situation is different so you have to weigh the cost/benefit and your personal risk tolerance.

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  • Kelly O'Keefe
    Accountant · NC · Member since 2023 · 123 posts · 163 votes
    2y

    In my experience that insurance is well worth the minimal cost. One incident of theft or vandalism could cost you thousands. Having insurance could also protect you from tenants who choose to cause damage while they are leaving, or even come back after they are out of the property to cause trouble 

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  • John Mocker
    Insurance Agent · Norwalk, CT · Member since 2016 · 2k+ posts · 1k+ votes
    2y

    Caleb,

    For a 1-4 family rental, you would most likely be quoted a Dwelling Fire Policy.  Look for "Special Form" coverage with the valuation of the property at "Replacmement Cost".  If the Theft & Vandalism is an option, check to see that you are getting special form.  If not, ask for a quote to increase the coverage to special form.  Also, look for Replacement Cost for the valuation of the the Building coverage.  If those coverages increase the cost, look to offset them with higher deductible.

    The Vandalism and theft are definitely worth having.  I know of one client who had one tenant vandalize the property and the damage exceeded $40,000 to repair.  That type of tenant is not likely to have any assets worth going after.  

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  • Account Closed
    Investor · Leander, TX · Member since 2016 · 299 posts · 402 votes
    2y

    Only if you have a STR and it is furnished with furniture and appliances you paid for.

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