What Is Landlord Insurance?
Landlord insurance is similar to any other homeowner’s insurance. However, it’s tailored to protect investors from the unique risks associated with renting out a property. For instance, landlord insurance offers protection against damages caused by tenants, unexpected repairs, and third-party liabilities. Some policies even provide financial protection by covering the loss of income or unexpected expenses such as repairs and legal fees.What Does Landlord Insurance Cover in Pennsylvania?
Landlord insurance coverage varies greatly depending on the company and policy picked. However, almost all policies in Pennsylvania cover the following risks:Property Coverage
Most landlord insurance policies will cover the rental property in case of unforeseen events. This can include fire damage, roof damage, third-party vandalism, structural issues, natural disasters, and damage caused by extreme weather conditions.
Liability Coverage
Renting out your Pennsylvania home makes you vulnerable to liabilities. For instance, if you fail to keep your property in good and safe condition and a tenant, guest, or even a contractor gets injured, you could be sued for negligence. Landlords in the state of Pennsylvania can be held accountable for criminal activities on the property. Luckily, most landlord insurance policies offer liability coverage. This will protect you from any claims made by a tenant, a guest, or an uninsured handyman or contractor. If you're ever sued for a covered event, your insurance will help pay for your defense costs and other legal fees.Loss of Rental Income
One of the biggest risks of renting out a property is tenants failing or refusing to pay rent.
If you depend on your rental income to cover mortgage payments and operations expenses, one missed payment can significantly affect your finances.
Fortunately, many landlord insurance policies in Pennsylvania offer protection against the loss of rental income.
If your property ever becomes uninhabitable due to unexpected damages included in the covered risks, your insurance will pay you out to cover the loss of rental income while repairs are underway.
However, loss of rental income coverage isn't always included in landlord insurance policies. You’ll have to double-check with your insurance to ensure you get this coverage.
Additional Coverage for Landlord Insurance in Pennsylvania
Some landlord insurance policies may not offer the protection your Pennsylvania rental needs. You can make up for it by purchasing optional endorsements on top of your standard insurance. Examples of additional coverage include the following:- Flood Insurance
- Theft and vandalism coverage
- Mine subsidence insurance
- Umbrella Insurance
How Much Does Landlord Insurance Cost in Pennsylvania?
No matter the size of your portfolio, getting landlord insurance is a must. The prices of landlord insurance premiums in Pennsylvania can vary significantly depending on the company you choose, the condition and location of your property, the annual deductible, and the coverage. For instance, a DP-1 is the cheaper policy in the market, which only offers basic coverage. On the other hand, DP-3 policies provide more comprehensive coverage, but at a much higher price point. To determine what type of insurance policy you should get, you must assess: your property’s unique risks, which will depend on its location and susceptibility to natural perils; your risk tolerance; and your emergency budget.
If your property is in a secure area and you have enough funds to cover unexpected emergencies, investing in a simple insurance policy should be enough.
It is important to do your research before choosing a policy. This will help you find the best coverage for your property at a more reasonable price!
