Find The Right Landlord Insurance Policy For You…
Illinois is the fifth most populated state in the United States. It is home to nearly 400 colleges and universities. With a highly population density and many college students in residence, there are many opportunities to profit from an investment in a rental property. To protect your investment, an Illinois landlord insurance policy is a must. Yes, it is true, renters should carry their own insurance policy for their personal belongings but having a landlord insurance policy is a good way to protect your property assets.
Landlord insurance and home insurance are different. Home insurance offers personal property coverage, meaning your belongings are protect in your residence. A landlord insurance policy primarily protects the “dwelling” (or structure) of a property and is not intended for the place you call home.
Whether you are just renting out a spare room for cash or are the proud owner of a large portfolio of properties, landlord insurance is a must. When it comes to finding the right blend of protection at the right price, an independent insurance agency such as R.C. Keller & Company is a must.
What Does Landlord Liability Cover?
Landlord liability coverages the property itself, damage or injury that occurs on your rental property, and loss of rent. The liability also kicks in to help with medical expenses for injured tenants and legal fees that are made against you for other damages, up to the limits stated in your policy.
Coverage may include:
- Tenant injuries due to a loose handrail or exposed sprinkler head causing a tenant to fall and become injured. If you are found negligent in maintaining the property of failed to warn the tenant of the potential safety risk, landlord liability insurance can cover you.
- Proper security for your tenants in terms of lighting and parking safety.
- Unlawful behavior by tenants that you fail to take measures against could land you in trouble with your neighbors.
- Liability to cover you against claims of accidental damage in relation to your investment property.
- Fair Rental Value Coverage to cover lost income due to your property ever being declared unlivable due to a covered loss.
- Inflation Protection which automatically adjusts your policy limits to keep pace with inflation, including premium discounts.
- Personal Injury Protection should a tenant claim injury arising out of libel, slander, invasion of privacy, wrongful eviction or wrongful entry.
- Lock replacement to cover the costs of replacing locks and keys.
- Worker’s Compensation if you have employees, like maintenance workers and property managers, a worker’s comp policy covers their medical costs if they are injured on the job.
Landlord Insurance Discounts
Insurance discounts work differently from the discounts you get at the grocery store. Instead of taking a flat 10% off the top, insurance discounts are typically based on the unique risks and safety features of your business (or home, car, anything else you insure).
Landlords pay more for their insurance coverage than regular homeowners, but they also have access to better discounts. The two most common types of landlord insurance discounts are:
- Safety discounts: When you add safety features like security camera and burglar alarms to your properties make them safer, which makes your insurance cheaper. Even something as simple as keeping the grass neatly trimmed can lower your landlord insurance costs, since it demonstrates your commitment to the property. Your tenants will appreciate it too.
- Bundling discounts: Buying landlord insurance policies for multiple properties you own can also lower your costs if you insure everything through the same company. Insurance companies want your business, so they will cut you a discount If you buy more coverage from them.
If you are veteran or active service member, you may qualify for military discounts, too. R.C. Keller & Company, as an independent insurance agency, will take the time to get to know you and help you zero in on the discounts you deserve.
Is Landlord Insurance Required In Illinois?
Landlord insurance is not required by the Illinois government, but it is almost always required by lenders and investors. They want to make sure their money is protected if a disaster strikes your business, so in most cases, they will not lend you money unless you have proof of insurance.
If you own all your properties outright and do not have financing, then you could technically get away without landlord insurance, but not having it is a terrible idea. A landlord liability insurance policy is there to protect you from bankruptcy, which in turn protects your income stream, your reputation, your tenants and your employees.
In short, for any business, landlord liability insurance is not technically required but it is a must.
Rent A Space In Your Home? Do You Still Need Landlord Insurance?
If you are renting out part of your own home (like a mother-in-law apartment or a spare bedroom), then you may not need a landlord insurance policy. You may just need to add a special rider to your homeowners insurance policy instead.
Your best option is to talk to one of the independent insurance agents at R.C. Keller & Company to see if the extra coverage you need can be added.
Do not just assume you are covered. It’s common for a standard homeowners insurance policy not to include this type of scenario, so you will want to double check that your insurance is in place before your tenants move in.
The R.C. Keller & Company Difference
You may think you want the cheapest insurance you can find but realize you may not be getting everything you bargained for. While most insurance products are similar in price and function, insurance providers are very different when it comes to structuring a policy to actually cover you.
There is no such thing as a one-size fits all insurance policy when it comes your livelihood or business. We have been insuring landlords in Schaumburg and the state of Illinois since, 1910. We are your neighbors and we always look for ways to protect you better by working with insurance companies that are both affordable and responsive.
Fill out the free quote form above and let the professionals at R.C. Keller & Company help you forge the strongest shield possible to help protect the things you care most about.