Rental Property Insurance: Providers, Costs & Coverage

Cody Cromwell
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Rental Property Insurance Providers

When choosing an insurance provider, with Multilevel Marketing home businesses, the key to finding the right company will be finding one that offers the best rates and lowest deductibles and has the right type of coverage to protect your apartment, house or condo from the unexpected.

Rental property insurance is unique because of those reasons. The rental market is very competitive; it’s not uncommon for renters to face a dizzying array of choices. These are not just choice, however, but a necessity. Today’s renters have access to convenient on-line access to a wide range of rental insurance options. With so many choices, it’s critical to shop around for the right company.

Rental property insurance is also unique because of the risks and issues that impact a renter into a landlord. A landlord is not in the business of insuring the actual building; this is the property owner’s responsibility. Landlords, however, are in the business of managing property, which is why renters have insurance to protect their personal belongings.

This is why renters in Multilevel Marketing home businesses can usually obtain insurance from a company that specializes in insuring landlords. This may be a different company than the one that insures his or her apartment, a different company than their own home insurance provider.


Insurance321 is an international provider of insurance products and services. Insurance321 products include commercial business insurance, truck insurance, and marine insurance for commercial and small businesses. The company’s corporate headquarters are located in St. Petersburg, Florida, and it has its international office in London, England.

Commercial properties fall within the scope of the company’s commercial business insurance (CBIs) program. Therefore, hosting a business that involves commercial properties requires commercial business insurance.

Insurance321 offers commercial business insurance (CBIs) for commercial business insurance (CBIs) for short-term and long-term properties in the United States and around the world. CBIs include a number of different components such as general liability, property, insurance, and professional liability.

Following are the steps to determine your commercial insurance coverage:-

{1}. Determine your frequency and amount of coverage you need. Once you know your frequency and amount of coverage you need, you can determine the type of commercial property insurance you purchase.
{2}. Buy insurance coverage based on your forecasted risk level. Commercial business insurance will enable you to consider well these possible factors.
{3}. Do a full risk analysis on all vulnerable elements. The proper level of insurance coverage permits you to cover potential losses from lawsuits, business interruption, and product liability.

Nationwide Insurance

A classic insurance company, Nationwide's largest claims come from homes and autos. A well-known brand, Nationwide is also the first choice for many policyholders. But despite nationwide’s reputation as an industry leader, homeowners may choose a different company based on the value of their home (insurance products vary depending on the value of your home), location (Nationwide insures only the U.S.) and more.

What to Know about Nationwide Rental Property Insurance

The most important thing to know about Nationwide property insurance is that it only covers your home (unlike most home insurance policies, which only cover the structure and certain contents).

Certain home insurance policies will only cover the structure of your home and will not cover any contents. This could leave you with financial liability if you have or are planning to purchase a couch, entertainment system or any other item that gets damaged or stolen because you didn’t have renter's insurance. Nationwide is one of those companies that will provide coverage for your home and contents.

However, Nationwide is a renter's insurance company, and it insures your home (or apartment) but does not provide liability coverage. If you are sued and damage comes out of the value of your coverage, you would only be able to seek out additional liability coverage, which will command a higher premium.

State Farm Insurance

State Farm is available in most states, and is one of the largest insurance companies. They are based in Bloomington, Illinois, and claim to be the world’s largest insurance company. They cover a lot of things, from home and automobile insurance to life insurance and payment processing for online purchases. They also have a relatively wide variety of coverage options to serve your needs. They have a program that allows homeowners to split coverage for there home with an adjoining neighbor. They have a program that covers both the repair and replacement of items in your home, like a refrigerator or dishwasher, right up to included furnishing and appliances. Another great feature that they offer is the option to specify and extra amount of coverage above your standard policy. If you have a high deductible, then you may not be able to afford to replace your entire house, but you can add on to your coverage to satisfy as much of your insurance criteria as you’ll need to. Finally, they also offer an optional personal accident protection that protects you from injuries.

If you own a business in the state of Illinois, you may also be eligible to be insured by State Farm. They are also the largest property and casualty company in the United States, and have an impressive selection of properties to insure, including:

  • Property
  • Auto
  • Homeowners Policies, including Renter’s Insurance
  • Life Insurance

Allstate Insurance

Allstate is known all across the globe for its efforts in making personal and commercial insurance simpler, ensuring protection for all its clients. It continues being innovative in bringing in new ideas and products, which keeps its customers updated on latest trends in the insurance industry.

Allstate renters insurance follows the same philosophy as their commercial insurance offering, giving coverage to multiple risks under one roof.

Allstate insures its renters for:

  • Fire and brim
  • Smoke and water damage
  • Theft – includes host break-ins
  • Extended storm or wind
  • Issues with fences and walls
  • Hazards caused by abnormal weather conditions
  • And if there is a minor slip and fall

Allstate ensures that all of their clients have access to 24/7 customer care and in case of a claim, they give the clients a 100% money back due to the policy’s quick restitutions.

Allstate Residential Renters Insurance Benefits:

  • In Case of any stolen property, Allstate will cover your belongings at no added cost in case of full replacement
  • For damages and loss of income while insuring your home, Allstate offers a reimbursement of up to 90 days.

Liberty Mutual Insurance

Let’s face it … a rental property can seem like a financial gamble at times. You’re relying on every renter to pay their rent on time, follow all of the property rules and guidelines, and be respectful of your home. But here’s the thing: nobody’s perfect. On the off chance that your tenant does back out of their contract, or does something that damages your property, you’ll need to have coverage to make sure your rental property is looked after. That’s where Liberty Mutual Insurance comes in.

It’s important to note that Liberty Mutual Insurance only covers rental properties. This may come as a surprise to some homeowners, but it’s actually true. Rental homes are typically run by owners and have numerous tenants in the same capacity. As a result, the home is considered to not be your personal home, but rather, your business. So, if you’re a homeowner there are insurance companies out there to suit your needs, but if you’re looking for a rental property insurance company, Liberty Mutual is the way to go.

Rental Property Insurance Costs

As a tenant, you won’t likely know the final cost to find the perfect rental property until you’ve visited a few and received quotes from multiple insurers. That’s exactly why an investment property is an investment property … and just like other types of real estate, rental property requires insurance.

The complexity of the insurance policies can vary based on each state, but in general, the tenant’s policy covers liability, loss of rental income and personal property. If you own the property, the landlord’s policy covers the structure, liability and additional living and personal property.

The policy types you’ll get from a standard landlord’s insurance policy will be different from vendor-provided tenants’ insurance, so if you purchase a new home or a shared apartment, you can talk with a licensed agent about what types of insurance you might need. It’s important to do your due diligence when you’re shopping for insurance, as that money represents a significant portion of your investment.

Factors That Affect Rental Property Insurance Rates

While the factors that impact rates are complicated, this post will provide you with some insight into how rental property insurance rates can be affected by various factors, and it will also provide you with some damage experience and rates to help you gauge what your insurance rates might potentially be.

The rental property insurance industry is evolving and changing as new policies and rate plans are being developed. Currently, multi-ownership insurance is one of the most common features being offered to home owners and renters. It is also being offered at different intervals to ensure that home owners and renters do not have to continuously renew their insurance policies.

Before you decide which type of policy to purchase, it’s important to understand how it can affect your rates and what risks it can provide you as a home or rental property owner or renter.

Multi-owner insurance is a type of homeowners insurance policy designed to protect owners of multiple properties. This type of homeowners insurance policy provides reimbursement for losses caused by damage to your personal property as well as your real property (your home and/or rental units) caused by certain perils.

Multi-ownership insurance may, depending on the type of policy, provide coverage for all owners, or only the named owner. In the event of a loss, each owner in a multiple ownership property receives his or her own share of the reimbursement, regardless of whether you’re the named or only owner.

Ways to Reduce Your Rental Property Insurance Costs

Renters Insurance is a type of insurance that covers your personal property in the event of damage or theft during your time as a tenant or while you live in the property as the owner.

There are a lot of distinct types of ways you can reduce the cost of your Rental Property Insurance policy as well as the coverage you receive. Decide what kind of coverage and level of each that you’d like.

A very common way renters insurance is reduced is by adding a deductible clause. By enacting the deductible clause, you are making it so that if you do incurring some losses, you don’t need to pay a deductible in order to receive coverage. So instead of some type of flat insurance fee you pay for each occurrence, it goes down to a certain maximum deductible you have the ability to pay out of pocket for before you receive any coverage.

Tips for Applying for Insurance for Rental Property

The renters insurance is for the tenant if an incident such as fire insurance or theft occurs. It covers the loss of or damage to the property.

Each rental property has different limitations regarding the amount and coverage.

The limits are set by the manufacture or local insurance company and must meet local and state laws.

With specially rules about police cars and fire stations, you might even only be offered the minimum amount of coverage. This money will help pay to repair or replace the building. It is important to make sure your renters insurance covers what is required by local law in the State of your home.

Insurance companies will usually require a deposit when you apply for renters insurance, and you have to pay the premium before the insurance is in place.

Also, let the landlord of the property know if you are applying for renters insurance, that landlord has the responsibility to inform the insurance company.

Each state has different renters insurance laws and will be different in the coverage and amount of insurance required.

Some companies offer discounts to those who have home owners insurance or have an alarm on the unit covered.

When you are looking to rent your home, an insurance policy will cover your house and its contents. There are usually only certain items that are excluded such as the following:

  • Weapons
  • Gambling equipment
  • Hypodermic needles
  • Syringes
  • Flammable materials

Get Multiple Rental Property Insurance Quotes & Compare Them

Getting multiple rental property insurance quotes is an obvious step for you to take. But what you may not know is that your insurance company may charge you more for a renters insurance policy if you don’t live in the property you’re insuring.

Sometimes they’ll cite it as a rental property security fee and some insurance companies flat out won’t accept renters insurance policies from individuals.

There are many factors that can influence the cost you pay for rental property insurance, so don’t be afraid to comparison shop. Here’s an overview of how to get multiple quotes and compare them.

Insurance for Rental Property vs. Homeowners Insurance

It’s hard as a homeowner to imagine life without insurance. But for renters, getting into homeowners insurance can be a tough sell – and expensive too. If you own a home, you’re used to the steady stream of money necessary to cover insurance, but renting requires more thought.

A quick run through with your city’s solid waste bill or your garbage removal service could get you locked in for the next year, and that bill quickly adds up. Besides the money you pay monthly for services, you’ll also have to budget for taxes and potential plowing costs.

So is it worth it to even look into insurance? Well, if you’re looking to invest in a property and keep your monthly payments low, then it most certainly is.

Property insurance pays to repair your rented property in case of fire, theft, vandalism, and other natural disasters. It also helps cover the costs to board up vacant units when you’re not using them.

Rental property insurance isn’t exactly the same as homeowners insurance, mainly because the two types of coverage are tied to different zones of insurance.

While homeowners insurance covers your home in its entirety, rental property insurance only caters to the areas where you’ve rented.

Frequently Asked Questions (FAQs)

What is property insurance?

Property insurance protects people and businesses against financial losses resulting from damage to their homes, cars, or other assets.

What is a rental property?

A rental property is a house, building or other commercial property that is rented to someone other than the owner.

Think of a residential home or apartment house and a commercial property (i.e. a commercial building or warehouse), where a certain number of people live or work in a space owned by someone else.

Why do I need insurance on my rental property?

The primary reason to insure a rental property is to protect what you own. You’re financially exposed if you don’t have any insurance, and you’ll have to pay for any losses that occur and any repairs that need to be done to the property.

Insurance also helps protect you from lawsuits that may arise as a result of an accident or from other liability. Property insurance also provides protection against damage to your property, such as the loss of a tenant’s belongings or from arson. Finally, property insurance provides coverage in case of theft, fire or other damages.

What is involved in buying insurance on a rental property?

There are two primary types of insurance on a rental property:

  • Property insurance
  • Personal liability insurance
  • Property insurance

How Much is a Homeowners Policy on a Rental Property?

They say that property is the key that makes the house a home. But, who would want to risk their home? That’s why a property insurance policy is a necessary home insurance.

Property insurance covers all the risks of losing your home and the valuables inside along with the home. A home insurance policy can protect not just your staple house appliances like the refrigerator and oven, but also covers other home essentials such as mattress, sofa, toolbox and outdoor home products.

A policy can cover the home for normal wear and tear or, if you’re upgrading your home, it can provide insurances for your home’ interior and exterior.

What Does a Landlord Insurance Policy Cover?

Landlord insurance refers to a policy that protects the owner of a rental property from damage or liability associated with a renter, or liability and damage suffered through your rental business. For example, if your tenants damage a rental property beyond the repair of the contents of the home, the landlord insurance policy will cover the cost to repair or replace the damaged property.

A landlord insurance policy can protect your rental revenue and income through liability coverage. Liability insurance protects your rental business against claims by a tenant. For example, it can protect you from lawsuits for injuries that a tenant sustains while occupying the rental property.

A landlord insurance policy can also protect you form liability from fire, theft, or damage to the rental property from a disaster, including weather, earthquake, or a tornado.

Can Landlords Require Their Tenants to Have Renters Insurance?

Certain renters insurance is optional. That said, you don’t want to skimp on the coverage. If one of your tenants slips and falls on your furniture, an insurance claim could be a nightmare to resolve and cost your business time and money.

Your moldy and faulty fridge breaks, and your tenant gets food poisoning. Either situation could literally cost you thousands in claims. If you have a renter’s insurance policy in place, you could make a claim and recover your losses.

Renters insurance providers will help you determine the necessary coverage for your home. You can discuss with a representative how much coverage suits your needs and which policy costs best for you.

Depending on your type of home, rent and other factors, your coverage options might include:

  • Fire damage
  • Smoke damage
  • Smoke alarms
  • Loss due to theft
  • Volcanic activity
  • Earthquake
  • Volcanic activity
  • Earthquake
  • Hurricane
  • Flood
  • Theft
  • Personal liability
  • Plumbing
  • Electrical
  • Water damage

If the damages are large enough, your policy may include replacement cost. This option will pay to repair or replace an item at a price you choose, usually shop price.

Is Landlord Insurance Tax Deductible?

While buying your own insurance (which could include landlord insurance) you could deduct the cost of the policy from your taxes. The IRS allows you to deduct policies that are used “for the production or collection of income or for the transmission of payments to suppliers or transferees.”

Tenants in most rental circumstances are considered tenants in common, which means that tenants own a percentage of a rental unit, and the landlord owns the rest. So as long as the landlord is making payments to you on time, and you are making money on the property, it’s most likely a deductible expense. (But see below for an important caveat.)

While you are getting married or divorced, be sure to discuss the tax implications of your insurance policies with a tax attorney.

Make sure to get quotes for both liability policies, and because your insurance will be used as income, an umbrella policy would be a good idea as well.

Keep in mind that life, auto, and pet insurance, as well as renter’s insurance, are not eligible for a tax deduction. Also, you can’t deduct the cost of homeowners insurance or renters insurance on a mobile home.

The Bottom Line

Rental property insurance is one of those things that are incredibly important but incredibly hard to find the time to sort out. You have to search, find, negotiate, and ultimately pick a provider when it comes to the type of insurance you need.

And then, with all that hassle, even if you have the right insurance, you might still not have enough coverage. When you look at the whole picture, it becomes apparent that the entire procedure just isn’t worth it … but that’s a topic for another post.

To Get the Best Insurance Policy…

You need to search a number of companies to find the right fit for you. Before you start your search, collect all the information you can from your previous policies or online.

Pick the right type of insurance coverage. Knowing the differences between any given policy is vital if you are to make an informed decision.

Moving past the last step, there is still a great deal of legwork to be done. You have to look at various factors such as the price of any given policy, the insurer’s claims experience, as well as the provider’s reputation and future potential for growth.