Rental Property Insurance

When searching for landlord insurance, you will find that most insurance companies will recommend you need coverage for your dwelling, contents, and liability, the recommendations are very general.

Unlike standard insurance providers, Anderson Insurance Group carefully examines the unique risks landlords face, ensuring that your policy provides more than just basic coverage. Lance Anderson, the owner of Anderson Insurance Group has owned and managed his own rental properties for 25+ years and knows the risks landlords face. At Anderson Insurance Group, we will insure your rental property as if it were our own.

“The details of the coverage matter!”

Dwelling: What’s most important is that you carry sufficient dwelling coverage. If you don’t, and you have a loss, the insurance company will pay you a percent of the coverage you should have carried. For example, you carry $200,000 in dwelling coverage and should have carried $400,000 and have a loss for $100,000. The insurance company will hand you a check for $50,000 since you carried 50% of the coverage you should have.

Click here for more information on how you can be penalized for not carrying enough coverage: How does coinsurance work in a commercial property insurance policy? | Anderson Insurance Group

Ordinance & Law: Pays to bring the undamaged portion of a property to code in case of a covered loss. The older the property, the more critical it is to have O & L.

Loss of Rental Income: Some rental properties will take 18 months to rebuild, and some are high-grossing properties. It's important to know how much coverage you have for loss of rent.

Liability: There are two important factors when discussing liability coverage: 1) It only costs an additional $20.00 per year to increase your coverage from the base of $100,000 to $300,000 or even $500,000. And 2) It's essential that you require your tenants to carry renters insurance. Click here for more information: Are You Requiring Renters Insurance? | Anderson Insurance Group

Special Form Coverage: Is the broadest dwelling coverage available almost all rental properties in Utah will be eligible for Special Form coverage, also referred to as a DP-3 form. Don’t settle for less than DP-3/Special Form unless you have to because of the age, location, type or claims history of the property.

Five Types of Landlord Risks

Single Family Rental Homes

Multi-family homes (duplexes – fourplexes)

Rental Condos

Rental Townhomes

Apartment Buildings Essential Insurance Coverage for Apartment Buildings in Salt Lake City, UT

Five things you can do to better protect yourself as a landlord:

Require renters insurance

Renters Insurance will cover your tenant for liability, adding an additional layer of coverage. If someone is injured on your property and your tenant carries $500,000 in liability insurance and you carry $500,000 in liability insurance, your protection could double to $1,000,000, depending on claim specifics. Make sure you are listed as a certificate holder on your tenant's liability coverage. Click here for more information: Are You Requiring Renters Insurance? | Anderson Insurance Group

Do not allow your tenants to house an aggressive dog.

Pets can be a liability, particularly aggressive breeds. Many landlord policies now exclude animal liability, so prohibiting aggressive dogs can help minimize potential legal and financial risks. For a list of aggressive dogs you should not allow, click here: What's The Average Dog Bite Claim in Utah? | Anderson Insurance Group

Make sure your property is to code.

If your property is to code, and someone is injured on your property, you will most likely not have any negligence and your policy will most likely just pay the guest medical coverage. Make sure your stairs are up to code with handrails and make sure your property is clear of debris that can pose possible liability and fire hazards.

Don’t allow candles, and only allow grilling 5’ away from the dwelling.

Setting clear house rules regarding fire hazards, such as restricting the use of candles and mandating a safe grilling distance, can prevent accidents and reduce the likelihood of costly insurance claims. For a list of House Rules you can use with your tenants, click here: House Rules for Renters | Anderson Insurance Group

Join the Rental Housing Association of Utah.

Joining RHA Utah will help you establish landlord best practices. When you and your tenants have a mutual understanding of what is and is not allowed on your property, you will both benefit and you will have a better landlord experience. RHA Utah | Rental Association of Utah Home

Additional coverage you can add to give yourself the best protection:

Service Line Insurance: Will pay to repair or replace the main sewer or water line from your house out to the street. Service Line Coverage - The Hottest Topic Between Plumbers & Utah Insurance Agents | Anderson Insurance Group This coverage is not offered on every policy. If not available on your policy, you can purchase the coverage through Dominion Energy’s HomeServe program: Dominion Energy | HomeServe

Personal Injury – Will protect you against accusations of discrimination or wrongful evictions and is very inexpensive.

Contents Coverage – Coverage for your appliances and any other removable items you keep on the property.

Loss Assessments – May be necessary if your rental property is part of a homeowners association.

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Three promises if you buy landlords insurance from an online company:

You will be underinsured.

Why do the online “insuretechs” do this to you? Why not, you choose the amount, (not them) the price looks good, you have a claim, they pay you ½ of what you really need because you, not them underinsured your property. It’s a win-win for an online quoting system.

Missing coverage.

These online systems are also programmed to prompt you to select lower limits or not add necessary coverage because again, the advantage to the “insuretech” you get a cheap price and, they don’t have to cover stuff!

You will overpay.

That’s correct; the prices from these online-only companies are not competitive. And, if you do pay cheaper now, you will pay when you have a claim. Insurance is like anything, you will either pay now or pay later, either way, cutting corners with insurance coverage does not save that much and is never a good idea.

Is Landlords Insurance the same as a Dwelling Fire policy?

Yes, the insurance industry has done a good job of confusing folks with outdated terms. Many companies have changed the name of their rental property forms to Landlords Insurance, but if you have a DP3 policy, the coverage is generally the same. Landlords and DP3 policies will generally also be replacement cost policies where a DP2 or DP1 policy may be ACV – Actual Cash Value or depreciate what the company pays in the event of a claim. Some properties bases on age, type, location or claims history, may only be eligible for a DP2 or DP1 policy.

Trust Anderson Insurance Group

Don’t leave your home at risk with incomplete coverage. Contact us today for a personalized, no-obligation quote.

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