According to the Insurance Information Institute (Triple-I), you can generally expect landlord insurance for a rental property to cost about 25% more than a regular homeowners insurance policy on the same property. The average cost of homeowners insurance according to the most recent data from Quadrant Information Services is $2,511 annually, which would make rental property insurance cost around $3140 annually.
Like homeowners insurance, landlord insurance isn’t required by law, but it can be a smart choice for your property investment business. This type of policy can protect you from unexpected damages or expensive injuries to those on the premises that you could be held liable for.
Your tenants’ renters insurance complements your landlord insurance policy, since it covers their personal belongings and liability, which aren’t covered under your policy. It can be a good idea to require it for your tenants in the lease to ensure they have the coverage they need while living there.
Yes, home insurance for rental properties can be referred to as rental property insurance and landlord insurance interchangeably — they are the same thing.
Yes, you can deduct your landlord insurance premiums at the end of the year as a business expense for your rental property investment business. If you have any questions about how to do this, we recommend contacting the Internal Revenue Service (IRS) or a tax professional.
