Original Article Date: 04/03/2022
Last Updated: 04/04/2022
Being a landlord isn't always a cakewalk.
The furnace going out in December, the midnight calls for a hot water heater - you've seen it all. The last thing that you need to worry about is the ever-increasing cost of insurance on your property.
Understanding why prices are higher than traditional homeowners insurance
Every property is unique, but when it comes to your landlord rental property, it is important to understand the risk profile that comes with your property.
You don't live there. A genuine landlord's policy is one that is covering a home that you don't live in. If you live in a multi-family home and rent out part of it, that should still be covered on a primary homeowner's insurance.
You don't have full control of what's going on there all the time, again, since you don't live there. You cannot always be in control of who is on your property at any given time, or what they are bringing there.
They are a form of income unlike your primary home, which usually is just where you live. The insurance carriers see risk in any sort of income situation and that is very understandable, you're likely not leasing a rental property for free. It's a business.
🥉Berkshire Hathaway Guard www.guard.com
Berkshire Hathaway is no stranger to insurance. Owned by the legendary investor Warren Buffet, Guard Insurance is based out of Wilkes-Barre, PA. Similar to the other Berkshire companies (GEICO, USLI, etc.) they pride themselves on quick underwriting and claims decisions - meaning you spend less time dealing with hassles.
Guard's property insurance in New York made our top 3 list as it's a relatively new product that has so far been very modest in pricing and generous in coverage limits.
What they look for:
Well maintained rentals
Property owners with multiple policies, as they do offer a discount for having your auto with one of their property agents - even though Guard doesn't write auto insurance
Customers interested in covering all properties with an umbrella
What they avoid:
"Distressed" housing - poor condition
Multiple dogs on the property
Cosmetic damage to exterior
🥈Genesee Patrons Co-Operative www.gpins.net
Located in Batavia, NY in Western New York, Genesee Patrons Insurance is one of several of the old farm and fire cooperative insurance companies that have been in existence since the mid-late 1800s. These carriers, also known as mutual insurance companies, make up 35% of all property premiums paid in the state of New York.
Genesee's ability to underwrite at the local level has given them a firm foothold in the Western New York region, but that doesn't stop them from exploring outside their territory.
What they look for:
Rural and suburban rentals
Property owners with multiple properties to insure
Student housing is okay with approval
Homes that are in need of a little work are usually okay
What they avoid:
High liability exposures, such as un-fenced pools, trampolines
Dogs with an aggressive history
Cosmetic damage to exterior
🥇Madison Mutual Insurance www.mminsco.com
Since 1893, Madison Mutual Insurance in Chittenango, NY (Suburb of Syracuse) has one of the most unique systems for rental properties we have ever seen as agents. Madison's coverages range from full replacement cost, actual cash value and their unique freedom homeowner's policies.
We REALLY love the Freedom policies because the policy provides for homeowners to choose the amount of coverage they want to carry on their home without an insurance company imposing requirements or claim penalties as a result.
Taken directly from the Madison Mutual website:
"This is in sharp contrast to standard Homeowners products found in the insurance marketplace which either don’t allow lower, customer-chosen limits, or only provide “actual cash value” depreciated coverage - even on partial losses"
What they look for:
Just about anything!
What they avoid:
Vacant/Unoccupied properties
Student housing
Summary
When it comes to landlord insurance, make sure you have the right product for the right house. Not all landlord policies are alike, be sure to read your policy!
To get a quote on Landlord Rental, tap or click the request button below. Our team of dedicated insurance professionals will have a one-on-one consult with you at no cost to review your options.
Coverage available in New York state only, excluding downstate counties and boroughs
800-484-9712
About the Author
My name is Taylor Haines, and I am the CEO & Principal of Encompass Agency, Inc. (Buffalo) and Jordan First Insurance (Jordan, NY). I grew up in rural Skaneateles, NY and have over a decade of experience in the insurance industry after my first job in 2012 at GEICO as a direct writer. I am passionate about insurance and its relationship to law, and frequently research the latest industry trends regarding the legal implications of insurance. I earned a Bachelor from the University at Buffalo in History and hold a Master of Science from Buffalo State College in Human Resources.