Landlord Insurance: Do You Need It As A St. Louis Rental Property Owner? - Article Banner

With increasing job opportunities in St. Louis, there is a strong demand for rental units in the city. According to the latest reports, around 54% of the units are renter-occupied. However, the increasing demand for rental units calls for advanced protection against financial losses, significant property damages, and natural disasters. This is where landlord insurance can help you.

Landlord insurance is tailored to safeguard your St. Louis rental property in multiple ways. It saves losses in rental income and protects your investment’s value in the long run.

Here are some of the most important reasons why you should get landlord insurance for your rental unit.

Wider Coverage

Since homeowner’s insurance alone can’t protect you against rental problems, we encourage landlords to combine their homeowner’s insurance with landlord insurance to run their business peacefully. 

Unlike homeowner’s insurance, which covers only domestic usage in primary residences, landlord insurance provides additional protection against rent-related issues like missed rent payments and liabilities if a person suffers an injury on the property.

Landlord Insurance Saves You Money

Landlord insurance covers all types of significant damage in your rental property. So, if any damage occurs in the property, such as structural damage like leaking roofs or plumbing, you don’t need to pay repair costs from your pocket 

What Does Landlord Insurance Cover?

Landlord insurance covers physical property in your rental, including structural or equipment damage. Here is how.

  • Rental Property Protection

The policy covers the damage caused due to fire, flood, windstorms, earthquakes, lightning, and other natural calamities. In addition to that, it also protects you against tenant-caused damage and criminal activities like break-ins or vandalism.

  • Other Structures and Personal Belongings

With landlord insurance, you can protect the additional buildings or structures in your property like sheds, garages, fences, personal properties, and equipment, such as lawnmowers, snowblowers, and other appliances.

  • Non-Occupied Dwelling Endorsement

Things like severe mold, pest infestation, and sinkholes can make your property completely inhabitable. Also, during repairs and renovations, you can’t rent the house, which causes you a significant loss in rental income. Here, the insurance policy helps you reimburse the lost rental revenue and cover your investment until it is ready to rent again.

  • Landlord’s liability

If tenants suffer any injury on your rental property, you are responsible for paying their medical bills. For instance, if the stairs in your property are not in good condition and cause severe injuries to the rafters, you shall be held liable. Fortunately, landlord insurance covers medical and legal bills that arise from such incidents.

Additional Coverage

You can add on some optional coverages in the landlord insurance based on your neighborhood, location, and age of the property.

  • Legal Protection

Adding legal protection to your landlord insurance can help you cover the legal fees required for evictions and lawsuits.

  • Emergency Coverage 

You can cover emergency repair costs like a leaking roof or broken plumbing if tenants ask you to fix them immediately. 

  • Flood Insurance

It is worth adding flood insurance coverage to your landlord insurance policy as homeowner’s insurance policies do not cover flood-caused property damage.

  • Extended Dwelling Coverage

A standard insurance policy can provide an additional 25% to 50% of the coverage amount if your property faces complete loss. This replacement cost allows you to rebuild your home if the dwelling coverage listed on the insurance policy exceeds.

  • Building Ordinance Insurance

This type of policy covers the cost of complying with building codes, laws, and ordinances revised after your building was built. For instance, you might need to install sprinklers according to revised build codes, but you don’t need to pay for it if you have already included the coverage in your policy.

Average Cost Of Landlord Insurance

Insurance CostThe cost of landlord insurance may vary according to the plan and the state you live in. For example, in Missouri, the average annual premium of landlord insurance is between S1,948 to $2,025, and the monthly premium is around $162 – $169. 

Many insurance companies in St. Louis offer good and customized insurance policies based on your requirements and budget. However, if you don’t know which one to choose, approach a property management company like Amoso Properties. 

We are a full-service property management company in St. Louis that offers wide-ranging rental management services in the area. We can guide you through the best landlord insurance policies available in St. Louis. For more information, contact us at Amoso Properties.