How Much is Landlord Insurance?

Which Factors Increase the Landlord Insurance Cost?

The following factors are game changers. The more you detail your needs, the better protection you’ll get on your Landlord Insurance coverage.

 

Location

Where your rental home is located plays a huge role in your Landlord Insurance cost, and by “where”, we mean the state, city, and zip code. If your neighborhood has a higher risk rate for weather damage, let’s say hurricanes or earthquakes, or maybe a higher claims history due to crime, you can get higher premiums.

 

Each area has its risk factors and having a Landlord Insurance that covers them specifically is essential. If not, why bother having an insurance policy that doesn’t have your back when you need it most? Whether it’s natural disaster probabilities, crime rates, or even local construction costs, PSIC has them in consideration to ensure that your coverage is as reliable as possible.

 

 

Age and condition

Keeping up with your rental home’s maintenance, like the plumbing, electrical system, or sump pump control is key to avoiding high expenses for repairs, and also potential issues with your tenants! It can also help you get more affordable and tailored Landlord Insurance coverage.

 

Old homes, as unique as they are, demand more care. The older the investment property is, the higher the risk of investing in its maintenance. That’s why the age and condition of your home are critical details for getting reliable Landlord Insurance coverage.

 

 

Square footage

The size of your home will directly impact your Landlord Insurance cost. In other words, the bigger your investment property is, the more expensive its replacement cost can potentially get in the event of a covered peril. Your rental home’s measures will allow us to provide more accurate protection.

 

Imagine your home needs repair or rebuild due to a covered loss, the expenses of the construction materials may be higher or lower depending on your property’s size. By having those spaces previously measured, you can have proper coverage for your investment property.

 

 

Roofing

Your roof is your main protection against perils such as wind, fire, or other hazards. Its age, condition, shape, and material directly impact your Landlord Insurance cost. The stronger, reliable, and newest it is, the better.

 

You can specify it during the quote process, and once you have Landlord Insurance coverage, there may be inspections to ensure the age and condition of your roof actually qualifies.

 

 

Type of materials

Construction materials play a big part in determining your Landlord Insurance cost. If your investment property is built with durable and resistant materials, your premium rate will probably be lower. In other words, if your home is robust, your Landlord Insurance will be more affordable.

 

PSIC Landlord Insurance protects you from several perils such as fires, wind, freezing, and theft among others. If your home was built with rock-solid materials, let’s say fire-resistant, then it will be more likely to withstand unexpected circumstances.

 

 

Tenancy

This factor considers your rental activity in your property. Meaning, your Landlord Insurance cost will depend on how the occupancy status of your rental property actually is. We will take into account the level of risks associated with how you’re choosing to insure your investment home.

 

If you are more likely to have long-term tenants on year-long leases, it generally implies stability and responsible care for the property. Occasional short-term leases can indicate less commitment, potentially leading to damage and higher premiums.

 

 

Deductible

Selecting your Landlord Insurance deductible is all about balancing cost with comfort. Opt for a higher deductible, and you might see lower premiums, but remember—this means more out-of-pocket expenses when a claim happens. You can read more in Landlord Insurance Explained or contact an agent who’s ready to help you.

 

 

Coverage

In the end, having insurance means you prioritize your safety, and you’re keeping your loved ones, and your investment property safe. Finding the right balance between having robust, comprehensive coverage while keeping it affordable, is essential.

 

You can find in Landlord Insurance coverage a detailed list of how you can enhance it. You can also contact an agent for better assistance.

 

 

Claims history

Your claims history reflects on your policy cost. Meaning, that if you didn’t file any claim in the past years, either with PSIC or another insurer, it can positively influence your premium rate! Why? Your claims history indicates potential risks of future claims, which in turn raises or decreases premium costs.

 

 

Attractive nuisance

When we talk about attractive nuisances we are referring to potentially dangerous conditions or objects in your investment property that may attract children but pose a risk of harm or injury. A few examples, meant to illustrate alone, are swimming pools, treehouses, hot tubs, and skateboard ramps, among others.

 

This factor recognizes that children, who may be too young to understand a potential danger, can be drawn to these features out of curiosity or fascination and get hurt. These risks can affect the final cost of your Landlord Insurance coverage.

 

 

How to Lower Landlord Insurance?

Simple upgrades and savvy decisions can lead to substantial savings. It’s time to make the most of your Landlord Insurance!

 

Remove outdated wiring and plumbing

Replacing old and potentially unsafe electrical wiring, plumbing pipes with modern, up-to-code alternatives, or repairing an old gazebo or porch will always be a wise choice. These updates also mean you’ll lower the risk of incidents that lead to claims, and potentially reduce insurance costs.

 

 

Security devices

Investing in security devices is like a safety blanket for your wallet. When installing a fire and burglar alarm or adding fences to your swimming pool, you’re not only taking care of your tenants and rental property, but you could also lower your Landlord Insurance cost.

 

 

Require Renters Insurance for tenants

Including Renters Insurance as a requirement in your tenant’s lease could help you mitigate costs. It can avoid potential issues, reduce financial burdens while renting, promote a higher responsibility, and keep your investment safer. You can recommend PSIC Renters Insurance coverage to your tenant or contact an agent for guidance.

 

 

Increase your deductible

Increasing your deductible is a simple switch that could lead to significant savings on your Landlord Insurance coverage. It means you are choosing to pay a lower premium, but assuming you’ll pay more, in case you need to file a claim.

 

 

Contact an agent

The best Landlord Insurance coverage is the one that suits your needs. When you contact a producer you’ll be able to reach the ideal balance between affordable rates and great protection. They are experts in analyzing your situation, possessions, and needs and combine them into customized Landlord Insurance coverage.

 

 

Check PSIC discounts

Who doesn’t love a good discount? Save money with PSIC and you might have the perfect deal by finding out what peace of mind actually means. You can learn more about it in Landlord Insurance Discounts.

 

 

Review your coverage

Tailoring your coverage helps ensure you’re only paying for the protection you genuinely require. Make sure your Landlord Insurance coverage meets all your requirements, and if you check that it’s up to date on a regular basis, you’ll be saving money and time, and living stress-free!

 

 

Bundle PSIC policies

Save money with PSIC when having 2 or more policies! That being said, were you thinking about protecting your motorcycle? How about an off-road vehicle? At PSIC we offer a wide range of coverage, ready to suit your needs. Check them out!

 

 

Where Does PSIC Offer Landlord Insurance?

We currently offer Landlord Insurance in the states of Arizona, California, Connecticut, and New Jersey. To learn more about how you can customize your policy please select your state and learn more about Landlord Insurance.

 

We plan to expand our Landlord Insurance coverage nationwide soon, ensuring all owners the benefit of our reliable insurance solutions.