May 1, 2021
Being a landlord means being exposed to more risk than a traditional homeowner. The potential for frivolous lawsuits regarding rentals is significantly higher compared to a primary property. As that is the case, it’s important to protect yourself by investing in landlord insurance. But before you do, here are a few things you should know.
What Does Landlord Insurance Cover?
Being a landlord may sound easy enough, but in reality, it can be a risky business. Lawsuits can come from anyone — for any reason — and leave you bankrupt. Luckily, landlord insurance covers a wide range of circumstances. Landlord insurance most often covers:
- Natural disasters
- Theft, burglary, and vandalism
- Damage caused by tenants
- Injury to tenants or others on the rental property
What Affects Insurance Premiums?
Multiple affect landlord insurance premiums. Here are some of the most common factors:
Year of Construction
If your rental property is old, you can expect to pay higher insurance premiums. Older homes that have not had any upgrades in the last 20 years are more likely to experience emergencies or system breakdowns. Newer buildings, on the other hand, typically incur lower insurance premiums.
Does your rental property have an unfavorable claims history? If so, you’re probably looking at paying more every month. Properties and owners with frequent or large claims within the past six years will have a difficult time finding a favorable insurance policy. Buildings and owners with little to no claims in the past six years will generally have better coverage options.
The location of your rental property plays a significant factor in determining your landlord insurance premium. Certain areas have higher crime rates than others. Insurance companies factor crime into pricing, and if your property is located in an area with a high crime rate, you will likely pay more.
Get Your FREE Quote Today
Ready to protect yourself with comprehensive landlord insurance? Look no further than American Heritage Insurance. We serve landlords in Baltimore County, Frederick County, and throughout Maryland. Contact us now to receive a free MD landlord insurance quote and purchase a policy today.