Roberts Insurance Group Blog
Rental property insurance is one of the areas that we focus on and specialize in at the Roberts Insurance Group. We've helped many investors throughout the state insure their rental properties with the very best coverage available. A question we hear all of the time is: who has the best rental property insurance in Georgia?
Rental property insurance is very commonly referred to as landlord insurance. Landlord insurance differs from homeowners insurance in that the coverage is designed and rated specifically for rental properties. Trying to cover a rental property with a homeowners policy would be far more costly and coverage would be limited.
Similar to a homeowners policy, a landlord policy will have dwelling coverage that protects the home. It is important to make sure the home is insured at full replacement cost. Something we see in the marketplace is that many landlord policies only insure the dwelling for Actual Cash Value (ACV). ACV means that depreciation will be deducted from any claim pay out, in addition to your deductible. This is NOT the coverage you want for your investment.
One of the main things that differs between homeowners policies and landlord policies is the personal property coverage. Homeowners policies typically come with a larger amount of personal property coverage. Since you (the landlord) aren't living there, this high of coverage typically isn't needed. However, you will still want to have some coverage available for things like appliances, curtains, blinds, drapes, etc. And if you have a short term rental property (like Air BnB), then you'll want to account for the furniture as well.
Similar to homeowners policies, landlord policies will have liability coverage packaged in. Liability coverage will help protect you, as the property owner, from lawsuits brought against you for bodily injury on the property, among other things. If your rental property is covered as a homeowners policy, the liability coverage will not extend, which is why it is very important to have your rental property correctly insured.
Loss Of Rent/Income
Arguably the most important coverage for your rental property will be coverage to protect your cash flow. This is called loss of rent of loss of income coverage. If there is a claim that arises and the home is uninhabitable, then this coverage will pay for your loss of income until it is able to be rented out again.
Other Things To Consider:
Short Term Rental vs Long Term Rental
With the rise of things like Air BnB and VRBO, many investors are starting to rent their properties out on a short term basis. It is VERY important to have your home rated for short term tenants instead of for long term tenants. Why? Because not all insurance companies like to insure short term rental properties. If a claim arises while your home is being rented out for short term rental and your policy isn't written properly, your claim will be denied and you'll be stuck paying out of pocket to fix the damage AND you won't have access to loss of rent coverage OR liability coverage if there is a lawsuit. This would be a nightmare for any investor.
Commercial Policy vs Personal Policy (DP3)
When it comes to landlord insurance, many landlords will choose the insure their properties on a commercial property instead of a personal policy (DP3). A commercial policy will allow insureds to insure their properties in the name of an LLC, schedule as many properties as they want, and provide uniform coverage and deductibles across all of their properties, and increased commercial general liability limits. Some carriers will allow personal policies (DP3s) to be written in the name of an LLC under certain circumstances and some will allows you to schedule properties on one policy (up to a certain limit), but there are often limitations that make it difficult for an investor or group with a big portfolio.
So Which Carrier Is The Best?
In addition to having your policy written and rated properly, you want to make sure you're getting a good price so that you, the investor, can get the very best value for your landlord insurance. Rates will be based on many different factors, including the location, short term vs long term rental, home characteristics, pervious claim experience, and more. It is important to work with an independent agent that has access to dozens of different carriers to make sure you're getting the very best value. Below is a list of companies we've had recent success placing rental properties with:
If you're a new investor or not happy with the coverage and service provided by. your current company, give us a call at the Roberts Insurance Group at 678-250-8133. We work with many investors throughout the state to protect their investments and their wealth.
The Roberts Insurance Group is a Georgia Insurance Broker specializing in commercial and personal insurance for our clients throughout the state of Georgia. We help our clients lower their cost of insurance with our superior claim and risk management expertise and our extensive carrier access. We are in the business of building relationships with our clients to help them grow and succeed. Contact us today to see what we can do for your family or business.