It is not easy to be a landlord, it never is actually as the rental property business is known for attracting the business risk. Additionally, the rental property assets of an individual are not covered by the home insurance policy. Shocked! But yes that’s true and it could lead you towards losing the rental income due to uncertain loss. The loss can be anything such as flood, fire, earthquake or any other natural disaster. This type of rental property insurance also termed as landlord insurance. It is used to cover the risk of renting out the condo or home property for the long periods. The coverage under this insurance policy includes the liability costs, property damage and even the rental income for landlords. Here, in this article, we are highlighting the best insurance policies for a rental property in the USA market.
What does the rental insurance policies cover?
1. Dwelling Coverage
This type of coverage related to the physical damage to the
apartment or home itself. While it covers the roof and walls of the rental
property but excludes the coverage for the personal items of both landlord and
2. Personal Property Coverage
Yes, most of the rental insurance policies cover the damage to the personal property of the landlord at onsite or tenants. While with certain non-negotiable condition such as if tenants install the new AC unit and it got damaged by fire in the house. Additionally, your rental insurance policy also covers the fire damages. Then, you can claim for it and it goes the same for the landlord.
3. Liability Coverage
This type of coverage protects the landlord from the medical
and legal expenses incurred to the tenants or landlord.
4. Loss of Rent Coverage period
If your policy includes this coverage then you will become eligible of getting paid the rent after the damages. That means when your apartment or house becomes inhabitable for a certain period of time due to repair work.
Different Types of Rental Property Insurance Policies
1. Dwelling policy 1
The policy provides the most basic coverage on low-cost premium. The insurer paid the claimed amount even accounting the depreciation factor.
2. Dwelling Policy 2
It is better than DP-1 and it includes additional coverage with naming the events and their relative damages coverage cost. It doesn’t take the depreciation into the account and take the current market price of the items.
3. Dwelling Policy 3
With the extensive range of covering the damages, the DP-3 is a bit expensive the DP -2. But includes most of the damages occurred under normal scenarios. Additionally, you can add optional add-ons with your basic DP while purchasing the rental insurance policies such as Vandalism Coverage and Ordinance or law coverage. However, it will eventually increase the cost of the premium for the buyer.
The Top 5 best insurance policies for a rental property in the USA
- Nationwide Insurance
- State Farm Insurance
- Allstate Insurance
- Liberty Mutual Insurance
Top Rental Property Insurance Policy under Different Categories
|S.No||Category (Best for)||Insurance Provider or Company|
|1.||Inflation Protection||Liberty Mutual|
|3.||Additional Structures Coverage||State Farm|
|4.||Multiple States||Foremost Insurance Group|
|5.||10 or more Units||American Modern|
|8.||Optional Medical Expenses||American Family|