How much does Landlord insurance cost?

The cost of protecting your rental property from claims can get expensive

The more money you give the insurance company the less money goes into your bank account

It is important for you to be successful as a real estate investor to monitor your insurance expenses

Pay $800 too much a year and owning a rental property may no longer make any financial sense

As we know repairs, maintenance and the cost of insurance eat into your monthly rental income

Keep your costs low and you make some easy supplemental income as a Landlord

Make enough money and you can buy another property

Build a real estate portfolio that can run on autopilot

Make enough and you can retire and live off your rental income

One question we always get is How much does it cost for Landlord insurance?

It all depends on the property

Underwriting factors that contribute to the price you pay are, but not limited to, age of home, roof shape, brick or frame, updates to electrical, plumbing, heating and air conditioning, roof

Most companies don't use your credit score to determine the price you pay so bad credit is not a large factor unlike homeowners insurance

If you are buying a new rental property, you will pay less for insurance if the house is brick with a hip roof than if it is frame with a gable roof

Buy a flood insurance policy and pay less

Are you over 54 years old?

That is a discount

Not all companies offer the same discounts

The Rental Advantage is producing some of the lowest rates for Real Estate investors

Let's take a look at a rental property in Metairie 70002

It is a single family property built in 1978

It is a brick structure with a hip shape roof

Replacement cost is $225,000

COVERAGE

LIMIT

Dwelling

225,000

Other Unattached

22,500

Personal property

5,000

Loss of Rental Income

22,500

Liability

300,000

DEDUCTIBLES

1,000 All other perils (anything not a named storm)

2% Named Storm (claim as a result of a named storm)


COVERAGE INCLUDED

Fire

Wind

Hail

Theft

 intentional Tenant damage

Loss of Rental Income

busted water pipes

Vandalism

Slip,Trip and Fall

Liability protection


COVERAGE ADD ON INCLUDED

Equipment Breakdown

Water Backup 5,000​


COVERAGE EXPLAINED

Equipment Breakdown is the replacement of appliances and air conditioning units if complete breakdown is not caused by wear and tear

Water Backup is a standard exclusion on all dwelling policies but this add on gives you 5,000 of coverage when water backs up into your property from the outside drain/sewer line​


ESTIMATED PRICE FOR PROTECTION YOU NEED

$1,714 - $2,034